Warnings about another wave of massive job losses at Volkswagen have been circulating for a few weeks, but now a new report says the company will cut one-fifth of its administrative staff. But it is hoping to soften the blow by offering early retirements as opposed to all-out firings, for now at least.
The plan, according to an internal memo sent to staff members, is to cut staff through partial or early retirement as opposed to layoffs, and not hiring new people to fill those jobs, according to Automotive News Europe. Back in June, the VW Group announced a new cost-cutting program designed to save €10 billion ($10.8 billion) by 2026, and this is all part of that. The goal is to meet a return-on-sales target of 6.5%, which is up from 3.6% last year, according to Reuters.
“We will need to operate with fewer people in many areas at Volkswagen in the future,” VW CEO of passenger cars Thomas Schäfer told employees yesterday, according to the report. “This doesn’t mean more work for fewer people, but rather shedding old habits and saying no to duplicating efforts and inefficiencies.”
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