Volkswagen may cut up to 2,500 jobs through voluntary retirements

The automaker may move employees into early retirement, every year, over the next decade.

Volkswagen, the German automaker, may reportedly cut up to 2,500 jobs per year over the next 10 years by moving workers into early retirement. Bernd Osterloh, chief of the carmaker’s influential works council, recently shared the development with the media.

Osterloh, apparently shared that the top management and labour leaders at the currently troubled automobile major, are locked in “tough” talks on future strategy and cost savings.

Labour leaders, who hold about half the seats on VW’s supervisory board, are trying to avert outright dismissals at Europe’s largest automaker. Instead, they are looking to support voluntary steps to reduce headcount via early retirements.

While Osterloh assures that the jobs of VW workers are safe, it is yet to be seen how the company will manage the transition of such a large part of its workforce.

Grappling with the impact of its diesel emissions scandal, VW will also apparently need to hire new staff in software development and mobility services, as Osterloh mentioned to the media without disclosing any further details.

On the other hand, in line with its parent Volkswagen’s (VW) efforts to overcome its emissions scandal, in July this year Porsche announced its plans to develop zero-emission cars. The automobile giant had plans to create about 1,400 jobs to develop, build and sell the battery-powered Mission E.