| 20 May 2024, Monday |

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

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 reported on Sunday.

In a statement, Volkswagen said 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.

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 program to be implemented at the six German plants of the main VW brand, which now employ nearly 120,000 people.

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).

  • Reuters