To enhance profitability, Volkswagen has announced its plans to reduce its workforce in the coming year. The decision comes as the car manufacturer aims to revive its struggling transition to electric vehicles.
In an official statement to media, Gunnar Kilian, chief human resources officer, Volkswagen Group, admitted that there is a necessity for a socially responsible reduction in its workforce. Additionally, the focus is to decrease personnel expenses in non-production areas by approximately 20 per cent.
The emphasis will be on implementing partial retirement and early retirement programmes to the fullest extent possible. Additionally, the management will also hold a meeting in Wolfsburg, the company’s headquarters.
No definite numbers have been revealed pertaining to the upcoming job cuts, but it may affect several positions and roles within its 10-brand group, including marques such as Audi, Skoda and Seat.
The 20 per cent cuts may not imply a reduction of 20 per cent of the workforce necessarily. Most of the cost savings will be derived by improving processes and making structural adjustments.
In September, Volkswagen announced the reduction of 269 temporary positions at its primary electric car facility in Zwickau. Currently, it employs approximately 6,75,800 people, globally.
Recently, Thomas Schaefer, the leader of the Volkswagen brand, detailed measures that had already been determined to cut expenses. These measures encompass abandoning a proposal to construct a new research and development (R&D) centre and expediting the process of product development.