Automobile giant Volkswagen Group has announced offering an early retirement package to all 2,300 workers at its two manufacturing facilities in India as part of a broader operational restructuring.
The German automobile group, which manages Volkswagen, Skoda, Audi, Porsche, Lamborghini and Bentley brands in India, currently occupies just 2% of the Indian market, which happens to be the third largest automobile market in the world, after China and the US, Reuters reported.
The voluntary early retirement scheme reportedly aims to “rationalise the manpower and align it with current needs”. The initiative comes as both factories operate below their installed production capacities.
Employees accepting the offer are expected to receive 75 days of pay for each year served or each year remaining until retirement, whichever amount is lower. Workers who sign up within five to 10 days will receive an additional payout.
According to an Autocar Professional report, Skoda Auto Volkswagen, which has overseen the group’s India strategy since 2018, confirmed that the scheme was introduced at the request of worker unions.
The report further stated that this restructuring move is aimed at strengthening operations while reaffirming the company’s long-term commitment to India.
