The move is a part of its initiative Transform 2025+, which aims at cutting the workforce and improving productivity.
Volkswagen has decided to cut costs by offering its employees a contract for early retirement. According to a statement given by the auto maker, about 9,300 employees have agreed to opt for the contract.
The company’s human resources board member Karlheiz Blessing released a statement that said the company had a goal of reaching 9,300 contracts signed for early retirement. As per the company, the employees wishing for early retirement can sign the contract until July 31.
This early retirement offer is mainly targeted at employees born between 1955 and 1960.
However, the company said that it is not forcing its employees to sign the contract for early retirement. The initiative aims at benefitting both the parties.
The move is a part of its initiative Transform 2025+, which aims at cutting the workforce and thereby improving its productivity by 25 percent in the next eight years (till 2025). This initiative also aims at repositioning and restructuring the brand.
It is currently working for development of electric vehicles and strives to become the world leader in mobility solutions. The automaker is also contributing to the project Electrify America which aims at building an electric car infrastructure in the United States.
The company is continuing its activity in North America, where it will build vehicles based on the MEB platform from 2021. It will launch different models of electric vehicles in the future. It has planned to take advantage of the growing economy of China by launching a full range of electric vehicles.
Volkswagen is also trying to change its corporate culture by introducing a new mission and leadership style. It strives to become the best employer in the industry.