Money Buzz! Europa

Tag: job cuts germany

  • Volkswagen AG will cut 5,000 jobs from its German factories

    Volkswagen AG will cut 5,000 jobs from its German factories

    Volkswagen AG will lay off 5,000 employees from its German factories by the end of 2023, as part of a cost-cutting program.

    Up to 900 employees are expected to opt for the early retirement scheme, while about 2,000 to 4,000 employees will leave the company following the gradual cut of their activities.

    Company sources told Reuters that the number of jobs at six factories in Germany of the main brand, VW, which currently has about 120,000 employees, will be cut.

    In 2019, VW announced the lay off of 7,000 employees.

    Handelsblatt newspaper, which had previously announced the plan, said the German group would cut up to 5,000 jobs.

  • Douglas to close around 500 of its 2,400 European stores

    Douglas to close around 500 of its 2,400 European stores

    Out of 2,400 European stores, a total of around 500 is to be closed, the majority of them in Southern Europe and about 60 of the circa 430 stores in Germany.

    Douglas has commissioned a transfer agency to support the circa 600 affected store employees in Germany (out of a total of more than 5,200) in their professional reorientation.

    Additionally, the affected employees will be offered severance payments above the industry norm.

    Douglas generated sales of 822 million euros in the 2019/20 financial year (up to the end of September), following a significant 40.6 percent increase in e-commerce.

    Due to this, Douglas has generated sales of 3.2 billion euros – just 6.4 percent short of last year’s record figure of 3.5 billion euros – despite a COVID-induced slump in its brick-and-mortar business after months-long lockdowns.

    Operating profit (Adjusted EBITDA) declined by 16.7 percent year-on-year to 292 million euros.