Volkswagen earmarks €16 bln for job cuts, plant closures, source says
The plan would set aside up to €10 billion for severance and retirement schemes as Volkswagen cuts about 60,000 jobs worldwide.
- Volkswagen estimates the total cost of job cuts and potential plant closures at around €16 billion , a person familiar with the matter said on Thursday.
- Europe's largest carmaker has embarked on its biggest restructuring ever, citing an "existential battle" against overcapacity, biting tariffs, and competition from China.
- Volkswagen plans to set aside up to €10 billion by 2030 for the elimination of roughly 60,000 jobs, covering retirement schemes and severance packages.
- Spiegel reported that phasing out production at four plants in Emden, Zwickau, Neckarsulm, and Hanover would cost about €6 billion, citing a "possible cessation of vehicle production" at those sites.
- Alternatives are being explored for four plants in Germany that will eventually run out of models, while the company plans a reduction of around 50,000 more positions.
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Volkswagen braces for €16 billion in costs for cutbacks, possible factory closures, source says
BERLIN, Sept 10 (Reuters) - Volkswagen estimates the total cost of job cuts and potential plant closures, part of a landmark restructuring pact struck last week, at around €16 billion ($18.6 billion), a person familiar with the matter said on Thursd...
The planned corporate conversion could be expensive. The possible out for four plants is to cost six billion euros. In addition, there are ten billion for the job reduction.
Volkswagen earmarks €16 bln for job cuts, plant closures, source says
Volkswagen estimates the total cost of job cuts and potential plant closures, part of a landmark restructuring pact struck last week, at around €16 billion ($18.6 billion), a person familiar with the matter said on Thursday.
The plan includes exploring alternatives for four German factories and a reduction of around 50,000 additional jobs.
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