By Helena Smolak

Volkswagen said it will have to cut jobs in the coming years to reduce costs and improve profitability as part of its transition into electro-mobility.

The German auto maker said Wednesday that the aim is to reduce labor costs by 20%, but didn't specify the number of job cuts expected.

"Over the next few years, we will have to reduce our workforce in a socially responsible way, taking advantage as far as possible of partial and early retirement schemes," said Gunnar Kilian, the group's head of human resources, in an internal publication disclosed to The Wall Street Journal, following a staff meeting at Volkswagen's headquarters in Wolfsburg.

Discussions between management and employee representatives are in the final stages, the company said.

This autumn, Volkswagen reduced production at several sites due to falling demand.

Write to Helena Smolak at helena.smolak@wsj.com

(END) Dow Jones Newswires

December 06, 2023 11:16 ET (16:16 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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