Volkswagen plans to cut as many as 4,000 of its workers at its plant in Germany, offering early an partial retirement for its older employees.
Volkswagen made a statement earlier this morning that it would offer partial retirement plans for those born in 1964, and early retirement for those born from 1956 to 1960.
Volkswagen has declined to comment on the proposed cost of the retirement plans, but has offered estimates on how many of its employees would likely take the plan. The company expects around 900 people to opt for early retirement, while expecting a few thousand to opt for partial retirement.
The proposed cost of this plan could go as high as 500 million Euros ($598 million), with Volkswagen planning to spend an additional 160 million Euros ($190 million) on its training budget.
Volkswagen spent only $40 million Euros ($47.8 million) on training last year.
The German car manufacturer, which has been operating for 89 years, is making these changes in response to the rapid growth of the electric vehicle market, wanting to capitalize on the success of tech-based car manufacturer Tesla.
Volkswagen has plans to cut its overhead costs by 5%, while also cutting its procurement costs by 7%, over the next two years.
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