Volkswagen Reserves Almost A Billion Euros For Job Cuts

The Volkswagen Group apparently believes that things could be less bureaucratic within the organization and is therefore planning to significantly reduce the number of office jobs. It reserves almost a billion euros for this, as Bloomberg knows. The Germans would initially want to get rid of a lot of employees gently by offering them an attractive severance package. It is for quick decision-makers.

The money would be intended for a severance bonus of €50,000, but then you would have to quit your job this month. A quick calculation shows that such a premium would be available for no fewer than 18,000 employees. Although Volkswagen now has to dig deep into its pockets for this, CFO Arno Antlitz expects to have compensated for it within a year. It comes as no surprise that the Volkswagen Group is downsizing. As early as 2021, then-CEO Herbert Diess warned that up to 30,000 jobs could be at risk due to the transition to electric driving. However, Bloomberg now also cites increasing competition from China as an important argument for downsizing and thus increasing margins.

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