Volkswagen to cut up to 5,000 jobs, Handelsblatt newspaper reports

Volkswagen to cut up to 5,000 jobs, Handelsblatt newspaper reports

News: Volkswagen to cut up to 5,000 jobs, Handelsblatt newspaper reports.

BERLIN (Reuters) – Automobile manufacturer Volkswagen plans to cut up to 5,000 jobs in Germany by offering older workers early or partial retirement. This could cost 500 million euros, the Handelsblatt newspaper reported on Sunday.

The newspaper quoted a spokeswoman who confirmed that the company had agreed with the works council on a plan to give those born in 1964 a partial pension while offering older workers early retirement.

Volkswagen was not immediately available for comment.

The Handelsblatt quoted company sources as saying that Volkswagen had allocated 500 million euros to the plan to compensate the departing workers by increasing their pensions, although this would save billions in the long term.

The newspaper said Volkswagen is also extending a hiring freeze until the end of the year. So far it was only in effect until the end of the first quarter. External settings can only be made in areas such as information technology and software.

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

Reporting by Emma Thomasson; Editing by Edmund Blair

Original Source © Reuters

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