VW Could Phase Out 2,500 Jobs a Year to Reduce Costs

Volkswagen Group may move 2,500 workers into early retirement per year over the next 10 years. That’s a according to German newspaper Handelsblatt, which quotes Bernd Osterloh, chief of Volkswagen’s works council, saying that the move would help avoid actually laying workers off.

“The jobs of VW workers are safe,” Osterloh told Handelsblatt today.

Following the emissions scandal and its $15 billion agreement with the US government, Volkswagen is looking to cut down on costs and reducing the number of employees is a simple way of doing so.

One of the factors that makes early retirement so attractive to VW is that its workforce is currently quite old. The average of a VW worker is nearly 43 years old right now, whereas in 1998 it was about 38 years old.

The job of reducing its workforce will be complicated, though, by the need for new employees in software development and mobility services.

[source: Automotive News]

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