Reuters Mike Blake
The “Volkswagen” car manufacturer intends to lay off 5,000 employees in Germany and refer them to early or partial retirement for those who have reached the retirement age, in a move that could cost 500 million euros.
The German newspaper “Handelsblatt” quoted a spokeswoman for the company as confirming the agreement on the plan with the Workers Council, including the provision of partial retirement for those born in 1964 and early retirement for older employees.
The newspaper, citing company sources, said that Volkswagen has allocated 500 million euros for the plan, because it intends to compensate employees who will leave their jobs by granting them increases for retirement benefits, although it will save billions in the long run.
The company did not issue any official comment on the matter.