Volkswagen's Job Cuts: 20,000 Employees to Depart as Part of Cost-Cutting Program
Numerous Volkswagen staff members opt for part-time absences
Get ready for a seismic shift at Volkswagen as around 20,000 employees are set to call it quits by 2030. This is all part of the automaker's bid to regain its competitive edge in the fast-evolving automotive industry [1][3].
Personnel director Gunnar Kilian confirmed the news at a works meeting in Wolfsburg, stating that around 20,000 departures from the company by 2030 are already contractually agreed [1]. Approximately two-thirds of these will opt for early retirement, while others will take severance packages or retire [1][3]. The specifics of the severance deals, such as the dollar amount, vary based on an employee's tenure with the company [3].
Volkswagen is bullish about reaching its goal of shedding 35,000 jobs in Germany by 2030. The next phase of the reshuffling will focus on targeting the large birth cohorts of 1969 and 1970, with over a quarter of the 130,000 jobs in danger [2].
The Volkswagen Crisis: A Razor's Edge
Just before the end of last year, Volkswagen and the employee side reached a comprehensive agreement on cost-cutting for the core brand, following a particularly heated wage dispute [2]. Plant closures and job cuts in Germany were initially on the table but have been temporarily shelved for now [2].
"We're making headway with the 'Future Volkswagen' agreement, and we're staying on track," said Kilian [2]. "We're witnessing tangible progress in factory costs in Wolfsburg, and socially agreed job cuts at the six German sites of Volkswagen AG are speeding up our transformation."
However, challenges lie ahead in the price-slashing journey, according to brand finance director David Powels. "We've still got a mountain to climb in the transformation arena." The aim is to turn Volkswagen into a formidable competitor and future-proof the company by 2029 [2].
Sources:
- ntv.de
- chl/dpa
- The Guardian
- Bloomberg
Keywords:
- Volkswagen
- Cost-cutting program
- Job cuts
- Severance packages
- Transformation
- Competitive edge
- Restructuring
- Future Volkswagen plan
- Electric mobility
- Operational efficiency
In the context of Volkswagen's cost-cutting efforts, the company is deliberating on vocational training programs as part of the community policy to help employees transition from the workforce, given the upcoming job cuts [2]. To finance this restructuring process and future-proof the company, Volkswagen is seeking operational efficiency and competitive edge in the automotive industry [2].
