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VW Could Trim 25,000 Workers Through Attrition
Volkswagen AG could use an approaching wave of retiring baby boomers to trim its workforce by 25,000 over the next decade, according to VW works council chief Bernd Osterloh.
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Volkswagen AG could use an approaching wave of retiring baby boomers to trim its workforce by 25,000 over the next decade, according to VW works council chief Bernd Osterloh.
He tells Handelsblatt that not replacing the retiring boomers—those born between 1946 and 1964—would protect current jobs and reduce VW’s workforce in Germany by about 20%.
A source tells Bloomberg News the company also wants to reduce its 40,000-member white-collar workforce at its Wolfsburg headquarters, in part by outsourcing such services as catering, information technology and plant security.
VW has been keen to lower its bloated costs through a combination of shared vehicle platforms, streamlined production and staff reductions. An analyst at Evercore ISI estimates the company must slash costs by about €22 billion ($24.3 billion) over the next several years to “put its business on a sound footing.”
Employment cuts alone won’t achieve that goal. Bloomberg says analysts agree the company also must curb its purchasing and r&d spending.
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