BERLIN (Reuters) – Volkswagen could cut administrative staff positions as part of savings and cost-cutting measures amounting to 10 billion euros by 2026, daily Handelsblatt reported on Monday, citing sources internal to the company.
Administrative staff costs will have to be cut by a fifth by 2026, with job cuts likely among the measures, Handelsblatt reported, citing the internal podcast with HR head Gunnar Kilian and CEO of the Volkswagen brand Thomas Schäfer passenger vehicles.
Volkswagen employs almost 40,000 administrative employees, including brand and group staff, according to Handelsblatt, who added that discussions were ongoing with the works council.
Volkswagen was not immediately available for comment.
The automaker said in June that it would implement savings and cost-cutting measures worth 10 billion euros by 2026 in order to achieve a sales profitability target of 6. 5%.
The main measures, which were initially expected to be in place by October, are expected to be defined by the end of the year.
(Reporting Victoria Waldersee; Nathan Vifflin, editing by Kate Entringer)
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