MAN Truck & Bus to Cut About 3,500 Jobs in Germany Amid Reorganization
January 26 2021 - 8:57AM
Dow Jones News
By Cecilia Butini
Traton SE subsidiary MAN Truck & Bus will cut about 3,500
jobs in Germany amid a reorganization of the company, it said on
Tuesday.
The German company said the layoffs were agreed on with the
General Works Council and with the IG Metall trade union. The job
cuts will include permanent and temporary employees, as well as
loaned workers, MAN Truck & Bus said. They will be implemented
through partial-retirement arrangements and the offer of voluntary
severance packages, or by offering employees the chance to move to
other companies in the Volkswagen Group.
The agreement supports a plan for the company to improve its
earnings by up to 1.7 billion euros ($2.06 billion), it said.
MAN Truck & Bus said it aims to generate EUR450 million
annually through additional sales, to cut material costs by around
EUR700 million, and to improve material overheads and personnel
expenses by up to EUR550 million.
The company added that it is examining options regarding two of
its sites, in the east German city of Plauen and in the Austrian
town of Steyr, including a possible disposal and shutdown. All
employees at the Plauen site have been offered employment at
Volkswagen's Zwickau plant, in central-eastern Germany.
The company added that the agreement with unions will form the
basis of a collective bargaining deal banning future layoffs for
operational reasons.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
January 26, 2021 09:42 ET (14:42 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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