VW is offering targeted severance payments and expanding partial retirement. The aim is to reduce personnel costs in administration by 20 percent by 2026.
Unlike previous severance pay programs, the offer does not apply to everyone interested, but must be accepted by VW in each individual case. The group had already agreed on key points with the works council in December, but left it open how many jobs would ultimately be cut. It's not about heads, it's about costs, they said. The program is expected to bring four billion euros in earnings improvement for the Volkswagen core brand as early as next year. By 2026 this should rise to ten billion euros per year, according to previous information, only a fraction of this is due to personnel costs. There should be significantly greater savings in material and fixed costs.. VW wants to reduce staff costs in the administrative area by 20 per cent. This should be achieved without any layoffs, the company says. The savings are part of the efficiency improvement program launched last year.