Volkswagen to slash about 4,000 jobs, freeze hiring this year

The German car manufacturing company will offer early retirement options to older staff members

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In a bid to cut about 4,000 jobs, Volkswagen is planning to offer early retirement options or partial retirement to its older employees across its six plants in Germany. The move will cost the German auto manufacturer about five hundred million euros, say some estimates. However, no official figure has been revealed yet, as it will all depend on the number of takers for the offer.

Those born in 1964 will be allowed to retire partially, whereas those born between 1956 and 1960 will be offered early retirement. About 900 employees out of its 1,20,000 workforce, are expected to opt for early retirement, while a few thousands may opt for partial retirement.

Volkswagen, which is over eight decades old, is focussing on increase its training budget by about 40 million euros, bringing it up to 200 million euros. It is planning to focus more on technology and also freeze hiring for 2021.

Its inhouse software development will also get a major push. To make this happen, it has already set up the Car.Software Org, with about 4,000 workers who work on developing a system capable of managing vehicle data flows and connecting them to the cloud.

Over the next five years, the Company will double its investment on digitisation. It plans to spend 27 billion euros on digitisation.

It will only hire externally in the areas of electric cars, digitalisation and battery cell development.

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