Part of Volkswagen's 10 billion euro ($10.9 billion) savings plan would include personnel cutbacks, company managers informed employees. Thomas Schaefer, the brand boss, issued a warning, stating that the company's cars were becoming less competitive due to high prices and insufficient productivity.
The German automaker is currently negotiating a cost-cutting plan for its VW brand with its works council. This is the first move in a group-wide initiative to increase efficiency as the company moves towards electric vehicles.
"With many of our pre-existing structures, processes and high costs, we are no longer competitive as the Volkswagen brand," Schaefer told a staff meeting at the carmaker's headquarters in Wolfsburg, according to a post on the company's intranet site.
The corporation earlier declared that it would not implement layoffs until 2029 and that it intended to utilise the "demographic curve" to downsize its personnel.
Member of the human resources board Gunnar Kilian stated during the meeting on Monday that agreements on early or partial retirement would be used to accomplish this.
Kilian clarified that the majority of the 10 billion euro savings target would be attained through non-personnel reduction measures, with the specifics to be determined by year's end.
"We need to finally be brave and honest enough to throw things overboard that are being duplicated within the company or are simply ballast we don't need for good results," Kilian said.
(Source:www.business-today.in)
The German automaker is currently negotiating a cost-cutting plan for its VW brand with its works council. This is the first move in a group-wide initiative to increase efficiency as the company moves towards electric vehicles.
"With many of our pre-existing structures, processes and high costs, we are no longer competitive as the Volkswagen brand," Schaefer told a staff meeting at the carmaker's headquarters in Wolfsburg, according to a post on the company's intranet site.
The corporation earlier declared that it would not implement layoffs until 2029 and that it intended to utilise the "demographic curve" to downsize its personnel.
Member of the human resources board Gunnar Kilian stated during the meeting on Monday that agreements on early or partial retirement would be used to accomplish this.
Kilian clarified that the majority of the 10 billion euro savings target would be attained through non-personnel reduction measures, with the specifics to be determined by year's end.
"We need to finally be brave and honest enough to throw things overboard that are being duplicated within the company or are simply ballast we don't need for good results," Kilian said.
(Source:www.business-today.in)
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