Despite things returning back to normal, job cuts are something that many sectors are still witnessing. The latest job cuts have been announced by Volkswagen. The German automaker has said that it will cut thousands of jobs in Germany by offering older employees partial retirement. People privy with the development said that positions would be cut across various plants of company in Germany. This would be done under the retirement plan that was announced by Volkswagen earlier. Earlier there were some reports that the carmaker is planning to cut at least 5,000 jobs.
The carmaker said that a plan has been agreed upon with the work council. The company in a statement also said that it would offer partial early retirement to those employees who were born from 1956 to 1960. The early retirement plan will cost Volkswagen hundreds of millions of euros. The carmaker has not disclosed any figures and refused to comment on the development. A person privy with the development said that it would cost around USD 598 million to Volkswagen. The German car manufacturer said that around 900 employees are expected to the offer of early retirement.
The company said that according to its estimate, a few thousand will go for partial retirement. There are reportedly 120,000 people working in plants of the carmaker in Germany. Volkswagen also that the hiring freeze would continue and has been extended to the end of 2021. Earlier, it had announced that it would continue till the end of the first quarter. The development comes days after the carmaker lost the number 1 position in the world of being the largest carmaker to Toyota. The company reportedly sold around 9.5 million vehicles globally in the last year to grab the first. This was slightly more than 9.3 vehicles sold by Volkswagen in the same period. For the uninitiated, Volkswagen has 12 brands which include Seat, Audi, and Porsche.
