Volkswagen Could Cut Up to 5,000 Jobs by the End of 2023

Volkswagen Could Cut Up to 5,000 Jobs by the End of 2023.

GERMAN auto giants Volkswagen are looking at cutting around 5,000 jobs through early retirement plans by 2023, as part of a reduction in costs intended to finance the company’s transition to electric vehicles.

The announcement that the company is set to offer early or partial retirement to older employees could cost €500 million, as reported by the Handelsblatt newspaper on Sunday, March 14.

The newspaper quoted a spokeswoman confirming that the company had agreed on a plan with the works council to open partial retirement to those born in 1964, while also offering early retirement to older employees, as reported by Reuters.

Volkswagen expects “up to 900 employees” to opt for a short-term early retirement formula, while a “four-digit number” at the lower end of the range, expressed to be between 2000 and 4000 people, would leave the company as part of a gradual cessation of activity.

Volkswagen announced in December that it wanted to reach an agreement with the unions by the end of March to lower the costs by around five per cent by 2023 in order to free up enough resources for the company’s rollout of electrical vehicles.

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