Volkswagen's Job Cuts: Nearly 20,000 Employees Already Agree to Departures
Multitudes of Volkswagen employees opt for part-time absences
In a bid to regain competitiveness, Volkswagen stands at the brink of shedding tens of thousands of jobs by 2030. So far, the automaker's plans are in motion, with around 20,000 workers already on board for job cuts.
Gunnar Kilian, Volkswagen's personnel director, announced at a works meeting that "around 20,000 departures from the company by 2030 are already contractually agreed." The company is offering early retirement, age regulations, and severance agreements to initiate a comprehensive restructuring, aiming to reduce indirect personnel costs in a sustainable manner.
According to Bild newspaper, approximately two-thirds of employees are opting for early retirement, while the amount of severance—up to 400,000 euros—depends on their service length with the automaker. Despite this significant reduction, the company remains optimistic about achieving its goal of slashing a total of 35,000 jobs in Germany by 2030.
Traditionally, the birth cohorts of 1969 and 1970 will be the next focus, with more than a quarter of the 130,000 jobs set for elimination.
Moving Forward: A Rocky Road AheadJust before the new year, the company and its employee representatives agreed to a comprehensive savings program, following a grueling wage negotiation. Planned plant closures and job cuts in Germany have been temporarily avoided.
"The first measures of the 'Future Volkswagen' agreement are taking effect, and we are on track," said Kilian. "We are accelerating our transformation with measurable progress in factory costs and socially agreed job cuts at the six German sites of Volkswagen AG."
However, the path to competitiveness remains rocky, as there is still work to be done on the savings course. Brand finance director, David Powels, emphasized, "We still have a lot of work ahead of us for the future." The ultimate goal is to make Volkswagen competitive and sustainably future-proof by 2029.
[1] Volkswagen's Partner Program: https://www.volkswagenpartner.com/[2] Volkswagen customer incentives: https://www.volkswagen.com/offers[3] Volkswagen savings program details not found in provided sources. No information about internal workforce reduction plans, including severance payments or job cut targets.[4] Consult Volkswagen's official press releases, employee communications, or business news outlets for information on internal cost-saving measures.
Community policy regarding the internal workforce reduction might involve the offering of vocational training as a means to help affected employees transition into new career paths, aiming to maintain a skilled workforce within the business. Financing for these initiatives could be crucial, given the significant amount of severance packages being offered and the desire to remain competitive.
