[Germany] VW moves to trim payroll with €900 million buyouts offer

Volkswagen AG has offered €900 million in buyouts to its German employees as part of moves to prune bureaucracy, The Detroit News reports.

According to Bloomberg reporting, an internal document seen by the publication revealed that long-standing administration workers will get a €50,000 premium if they opt to end their contracts early.

Employees have until the end of May to register for the bonus. It will reportedly be paid on top of a severance package determined by pay grade and time spent at the company. 

The provision for the buyouts will be made in the current quarter, Chief Financial Officer Arno Antlitz said.

“We aim to compensate for those effects in the full year,” Mr Antlitz stated, during a call to discuss quarterly earnings.

The buyouts form part of a push by Volkswagen’s namesake brand to boost its returns and go up against Stellantis NV and more agile Chinese competitors. 

In late 2023, Volkswagen’s human resources chief Gunnar Kilian reportedly said that VW would need to reduce its indirect personnel costs by 20 per cent to reach this goal.

Source: The Detroit News

(Quote via original reporting)

Volkswagen AG has offered €900 million in buyouts to its German employees as part of moves to prune bureaucracy, The Detroit News reports.

According to Bloomberg reporting, an internal document seen by the publication revealed that long-standing administration workers will get a €50,000 premium if they opt to end their contracts early.

Employees have until the end of May to register for the bonus. It will reportedly be paid on top of a severance package determined by pay grade and time spent at the company. 

The provision for the buyouts will be made in the current quarter, Chief Financial Officer Arno Antlitz said.

“We aim to compensate for those effects in the full year,” Mr Antlitz stated, during a call to discuss quarterly earnings.

The buyouts form part of a push by Volkswagen’s namesake brand to boost its returns and go up against Stellantis NV and more agile Chinese competitors. 

In late 2023, Volkswagen’s human resources chief Gunnar Kilian reportedly said that VW would need to reduce its indirect personnel costs by 20 per cent to reach this goal.

Source: The Detroit News

(Quote via original reporting)