Germany based automobile brand Volkswagen said it will cut down its workforce by up to 7,000 staff, raise productivity and eke out 5.9 billion euros worth of annual savings at its core Volkswagen brand by 2023 in a bid to raise Volkswagen’s operating margin to 6 percent.
The Wolfsburg, Germany-based carmaker Volkswagen has ruled out compulsory layoffs until 2025, but early retirement will help to reduce its workforce between 5,000 and 7,000 positions, the carmaker said.
“The measures from the earnings improvement programme will enable our brand to achieve a competitive return level of six percent in 2022,” Arno Antlitz, Volkswagen brand’s board member for controlling, said in a statement.
The cuts will be realized through voluntary staff turnover and partial retirement, while temporary employees will be offered contracts at Porsche and the Volkswagen plant in Kassel, the German daily says.