MAN SE, the German truckmaker owned by Volkswagen AG, is in talks with labor unions about cutting between 1,000 and 2,000 jobs to lower costs and revive profit, according to people familiar with the matter.
The company plans to avoid forced layoffs by offering employees jobs in other parts of the company, said the people, who asked not to be identified as the talks are private and haven’t been finalized yet. An agreement is expected to be reached in the coming weeks, they said. A spokesman for MAN declined to comment.
Volkswagen, which earlier this year created a holding company for MAN and fellow commercial-vehicles unit Scania AB, has been struggling to create a global heavy trucks business that can compete with industry leaders Daimler AG and Volvo AB. Europe’s largest automaker has reaped limited financial rewards for the billions of euros invested in the last decade to purchase Scania and MAN.
MAN’s shares rose as much as 0.5 percent to 93.80 euros and were up that amount at 5:02 p.m. in Frankfurt trading. VW shares advanced as much as 1.2 percent to 209.75 euros.
The VW unit’s job-cut plans were earlier reported by Reuters.