• Jul 19th 2006 at 2:34PM
  • 3
Well, Volkswagen's job cuts at the brand's German facilities may not be popular, but at least they're fair. The company confirmed Wednesday that its plan to improve productivity and efficiency by cutting up to 20,000 jobs includes up to 20 percent of the company's 1,000 management staff.

The company hopes that managers will take the early retirement package currently on the table, which offers a payout of up to $245,000, plus a bonus of $68,000 for pulling the ripcord on the golden parachute before the end of September.

So far about 2,000 workers at all levels have accepted Volkswagen's severance package.

[Source: Reuters]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 9 Years Ago
      "Up to" While buyouts sound expensive, you have to dig deeper. Lets say you pay out 250,000 for a person that pulls down 50,000 a year, that's 5 years at base pay, what you're saving are all the other associated costs of that employee for 5 years. Lets say a person is making 100,000 a year that's only 2 1/2 years. Then you also have to ask how long could these folks stay on with a company? What would the costs be?

      You have to give companies some credit, while they make some mistakes, a bank of bankers, accountants, human resource people and actuaries do the math and come up with a figure that favors the company in most cases.
      • 9 Years Ago
      Wow no wonder those cars are way overpriced! Retirment packages, wow! My generation gets a pink slip an thats it.
      • 9 Years Ago
      Speaking of "up to", it says the job cuts include "up to" 20% of management staff, and anything from 1-19% falls under that statement.

      At any rate, it's nice to see them getting rid of more expensive management staff as well. Here's to hoping they get rid of entire levels of useless middle management and don't replace their jobs.
    Share This Photo X