VW Thinning Management Ranks

Volkswagen plans on reducing the number of management staff it employs through early retirements.

The plan is aimed at reducing the number of managers, flattening hierarchies, and encouraging entrepreneurial thinking at the company.

The scheme is similar to the one that was recently offered to VW’s blue collar staff. By incentivizing people to go into retirement early and not replacing them, VW hopes to cut thousands of jobs.

Ultimately, the aim is to improve annual productivity in Germany by 25% by the end of 2020 and improve profit.

“We are expecting our management levels to become younger and slimmer,” Herbert Diess, the brand’s CEO said in a statement on Monday.

New managers, meanwhile, will be selected differently. Typically, VW used Assessment Centers, which subjected applicants to a battery of tests over the course of a day. Now, junior managers will have to prove their mettle over the course of a year.

[source: Automotive News]