Volkswagen plans to cut up to 4,000 jobs at its German plant, offering partial retirement to its older employees, close sources told Reuters.
The sources said that the positions will be cups in the six companies German production units, as part of a retirement plan, previously announced Volkswagen. The press notes that the German newspaper Handelsblatt reported earlier that 5,000 jobs will be cut.
Volkswagen said in a statement that it had agreed to a plan with the working committee to offer partial retirement to those born in 1964 and early retirement to employees born from 1956 to 1960, according to Reuters. This move will cost the company several hundred million euros.
While the car manufacturer declined to comment on the story, a source told Reuters that the program could cost up to 500 million euros ($ 598 million).
Volkswagen said it expects up to 900 employees to take the early retirement offer, while several thousand will go for partial retirement. According to Reuters, the six German factories of the current main VW brand employ 120,000 people.
The car company also said it will extend the employment freeze until the end of 2021, after previously saying that the freeze will last until the end of the first quarter.