Volkswagen to cut up to 4,000 jobs via early retirement: Sources

  • Volkswagen has said that it is also extending a hiring freeze until the end of 2021.
Factory employee working on a Volkswagen ID.3 car
Factory employee working on a Volkswagen ID.3 car

Carmaker Volkswagen plans to cut up to 4,000 jobs at its plants in Germany by offering early or partial retirement to older employees in a move that could cost several hundred million euros, company sources said on Sunday.

Volkswagen said in a statement it had agreed a plan with the works council to open partial retirement to those born in 1964, while offering early retirement to those born from 1956 to 1960.

Also check these Vehicles

Find more Cars
Volkswagen Polo 2024 (HT Auto photo)
UPCOMING
Engine Icon999 cc FuelType IconPetrol
₹ 8 Lakhs
View Details
Volkswagen Tiguan 2025 (HT Auto photo)
UPCOMING
Engine Icon1984 cc FuelType IconPetrol
₹ 37 Lakhs
View Details
Volkswagen Taigun (HT Auto photo)
Engine Icon1498.0 cc FuelType IconPetrol
₹ 10.49 - 17.50 Lakhs
Compare
View Offers
Volkswagen Virtus (HT Auto photo)
Engine Icon1498 cc FuelType IconPetrol
₹ 11.56 - 19.41 Lakhs
Compare
View Offers
Volkswagen Tiguan (HT Auto photo)
Engine Icon1984.0 cc FuelType IconPetrol
₹ 32.79 Lakhs
Compare
View Offers
Volkswagen Id.7 (HT Auto photo)
UPCOMING
BatteryCapacity Icon77 kWh Range Icon621 Km
₹ 70 Lakhs
View Details

Volkswagen said it expected up to 900 workers to opt for early retirement, while a low number in the thousands would choose partial retirement, without giving a precise figure.

Two company sources told Reuters 3,000-4,000 positions would be cut in connection with the programme to be implemented at the six German plants of the main VW brand, which now employ about 120,000 people.

Also Read : Volkswagen’s hopes of catching Tesla depends on a $30 billion tech reboot

Handelsblatt newspaper, which earlier reported on the plan, had said the company would cut up to 5,000 jobs.

Volkswagen declined to comment on the cost, which will depend on how many employees accept the offer. One source estimated it at close to 500 million euros ($598 million).

As the 83-year old automaker tries to become more of a tech company modelled on Tesla, Volkswagen said it was raising the training budget by 40 million euros to 200 million.

Volkswagen said it was also extending a hiring freeze until the end of 2021. It had previously only been in place until the first quarter. External hires can only be made in areas like electric cars, digitalisation and battery cell development.

The Volkswagen Group said in January it would cut overhead costs by 5% and procurement costs by 7% over the next two years.

First Published Date: 15 Mar 2021, 09:12 AM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.