German automaker Volkswagen plans to cut another 12,000 jobs by 2030.
The company announced the move after a meeting with employee representatives in Hanover, Report informs, citing Spiegel.
The automaker wants all dismissals to take place in a socially acceptable manner. To achieve this, staff reductions will be carried out, among other things, through so-called "transfer companies."
By transitioning to such a structure, an employee receives assistance in finding a new job, for example, through advanced training programs. The Federal Employment Agency may cover part of the labor costs for such workers.
Volkswagen representatives emphasize that the transition to such structures must be voluntary. Exactly how many employees are planned to be laid off in this way remains unknown. VW will begin discussing contracts with such companies on November 24.
In recent years, VW has faced challenges due to slowing demand, difficulties with electric vehicle sales, and increased competition from Chinese corporations.
As a result, the concern has begun preparing for a massive restructuring, which includes the closure of plants in Hanover, Zwickau, Emden, and Neckarsulm (the latter produces Audi).