Volkswagen's Job Cut Decision: 20,000 Workers Say Goodbye by 2030
Multitudes of Volkswagen workforce opt for part-time absence from duties
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It's a tough time ahead for Volkswagen as they aim to slash tens of thousands of jobs by 2030, aiming to regain competitiveness. So far, they've secured a deal, with around 20,000 employees already agreeing to the grim reality.
Gunnar Kilian, Personnel Director, announced at a works meeting in Wolfsburg, "Around 20,000 exits from the company by 2030 are already contractually agreed." The company is providing incentives like early retirement, age regulations, and severance agreements as part of their comprehensive restructuring to reduce indirect personnel costs. Employees opting for early retirement or age regulations won't receive additional severance, with around two-thirds choosing early retirement, according to Bild newspaper.
The severance package amounts, up to 400,000 euros, depend on the length of service with the automaker. Volkswagen remains optimistic about achieving their goal of cutting 35,000 jobs in Germany by 2030. The next target involves the large birth cohorts of 1969 and 1970, with over a quarter of the 130,000 jobs at risk.
Just before the turn of the year, companies and employee representatives agreed on a comprehensive savings program for the core VW brand following a tough wage dispute. Job cuts and plant closures in Germany have been temporarily averted.
"The first measures of the 'Future Volkswagen' agreement are taking effect, and we are on track," said Kilian. "With measurable progress in factory costs in Wolfsburg and socially agreed job cuts at the six German sites of Volkswagen AG, we are accelerating our transformation." However, they're not yet at their target of the savings course. Brand Finance Director David Powels adds, "We still have a lot of work ahead of us for the future." The objective is to make Volkswagen competitive and sustainably future-proof by 2029.
- Volkswagen's Job Reduction Goals
- Severance Packages
- Comprehensive Savings Program
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- As Volkswagen strives to reduce its workforce by 35,000 jobs by 2030, they are offering substantial severance packages, which could potentially free up finances for ventures like vocational training programs within the community, thus supporting the development of a skilled workforce for various industries, including the automotive industry itself.
- As part of its comprehensive savings program, Volkswagen is incentivizing employees to retire early, a move that may influence local businesses and industries, as the retired workforce could potentially seek opportunities in entrepreneurship or participate in community efforts, contributing to the economy's growth and supporting the development of small businesses.
