Volkswagen stated that administrative personnel costs should be reduced in accordance with its company strategies. The company that will remove this budget from the administrative personnel section will reduce its personnel costs by 20 percent. So how? Here is the answer.
Volkswagen will offer the opportunity for partial or early retirement!
The recent economic situation in the world has put automobile companies in a difficult situation. In order to overcome this process, Volkswagen is also trying to reduce its administrative personnel costs. The Germany-based company, which will save 20 percent on administrative staff, will solve this situation without laying off anyone.
Volkswagen, which plans to separate its employees within the scope of partial or early retirement, shows that its priority is not to victimize anyone. The company, which has made changes not only on the administrative personnel side but also on the production side, plans to reduce the product cycle from 50 months to 36 months. Let us also inform you that we will see updated models more often. With all this, the German company, which canceled the research and development facility to be established in Germany, retained a budget of 862 million dollars.
According to the statements, the Wolfsburg factory, which once produced 780 thousand vehicles, now aims to produce 500 thousand vehicles. The decline in production, cancellation of the facility to be established and early retirement policy show that Volkswagen has serious savings plans. Or that the company is in a difficult economic situation. Let’s see what path the German company will follow in the coming period.
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