Title: Volkswagen Aims to Ditch 35k Jobs: 20k+ Employees Already Opt for Exit Packages
Numerous volunteers among VW staff opt for partial job absences
In its bid to regain competitiveness, the iconic automaker, Volkswagen, aims to shed around 35,000 jobs by 2030. The company has already secured the reduction of 20,000 jobs, according to personnel director Gunnar Kilian during a works meeting in Wolfsburg.
To achieve this goal, Volkswagen is offering various exit packages like early retirement, age regulations, and severance agreements as part of its comprehensive restructuring to slash indirect personnel costs. Employees electing early retirement or age regulations would not receive additional severance. Roughly two-thirds of the workforce are reportedly opting for early retirement, according to Bild newspaper.
The amount of severance - up to €400,000, Bild suggests - varies based on length of service with the automaker. Notably, the company remains hopeful it will reach its target of slashing 35,000 jobs in Germany by 2030, with the next focus on the large birth cohorts of 1969 and 1970. With over a quarter of the 130,000 jobs up for grabs, this transformation has turned into a daunting struggle for survival.
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. Plant closures and job cuts were threatened, but for now, those have been averted.
"The first measures of the 'Future Volkswagen' agreement are taking effect, and we're 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're speeding up our transformation."
However, the savings journey is far from over, cautioned brand finance director David Powels: "We still have a long way to go before Volkswagen can claim victory in its race to become competitive and fit for the future by 2029."
Although the search results do not provide specifics about any potential severance payments or job cuts by 2030, you may find pertinent details in official Volkswagen announcements or corporate communications. Additionally, you may come across the Volkswagen Partner Program, which offers benefits like discounts on eligible new Volkswagen vehicles for employees of participating companies.
Currently, participating companies include Costco, Sirius XM Radio, AAA, USAA, Sam's Club, among others. Additionally, there are ongoing sales and promotions like the Memorial Day savings, which encompass special lease and finance offers on the 2025 VW lineup and low APR rates through Volkswagen Financial Services. These deals are available until June 2, 2025.
- In the process of reducing its workforce, Volkswagen is also considering community policy reforms to support employees during vocational training transitions within the industry, potentially aiding them in securing new jobs in alternative business sectors.
- As Volkswagen aims to regain competitiveness, the company's financial department is closely monitoring the savings program's progress, with the ultimate goal of securing the automaker's future through financial stability.
