Volkswagen plans to cut up to 4,000 jobs at its plant in Germany by offering partial retirement to its older employees, sources close to the issue told Reuters.
Sources reported that the positions would be cup in all six companies German factories as part of a retirement plan were previously announced by Volkswagen. The media reports that the German newspaper Handelsblatt previously reported that 5,000 jobs would be reduced.
Volkswagen said in a statement that it had agreed 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 would cost the company several hundred million euros.
Although the vehicle manufacturer did not want 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 accept the early retirement offer, while a few thousand will go for partial retirement. According to Reuters, the six German plants of the current main brand VW employ 120,000 people.
The car company also said it would extend its hiring freeze until the end of 2021 after previously saying the freeze would last until the end of the first quarter.