VW Plans More Job Cuts in Germany in Pact with Workers

Volkswagen AG plans to cut more jobs in Germany through voluntary measures such as partial retirement and buyout packages as part of efforts to trim fixed costs.

Europe’s largest automaker said in December it planned to hammer out a deal with unions by the end of the first quarter to lower costs 5% by 2023 to free up funds for electric vehicles and software operations. An existing labor deal at VW rules out forced layoffs until the end of the decade.

The agreement with labor representatives could lead to as many as 5,000 job reductions and about 500 million euros ($598 million) in restructuring expenses, according to a Handelsblatt, which reported the news earlier Sunday.

“Due to our high investments in the expansion of electromobility and digitalization, Volkswagen was able to develop a pioneering role as a driver of automotive change,” VW’s personnel chief, Gunnar Kilian, said in a statement. “This requires continued strict cost management in order to finance the necessary investments in the future.”

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