Volkswagen Reshaping Its Workforce: 35,000 Jobs on the Line by 2030
Employees of Volkswagen en masse opt for part-time absences
Get the latest scoop on Volkswagen's restructuring plan as they aim to slash thousands of jobs and reclaim their competitive edge.
The German automaker has already secured the elimination of 20,000 jobs, with around two-thirds opting for part-time retirement[1][2]. "We are on track," said personnel director Gunnar Kilian at a works meeting in Wolfsburg. The company is providing various options for employees to voluntarily exit, such as part-time retirement, age regulations, and termination agreements, as part of their comprehensive restructuring aimed at reducing indirect personnel costs[2].
The savvy move forms part of Volkswagen's broader strategy to stay afloat in the rapidly-changing auto industry, as they gear up for the shift towards electric vehicles. The company has projected cutting 35,000 jobs in Germany by 2030[1].
According to the enrichment data, the forthcoming job reductions are predominantly concentrated at Volkswagen's German plants[4][5]. Furthermore, the company will reduce apprenticeships from 1,400 to 600 starting in 2026, a move that aims to bring down operational expenses[1][5].
Volkswagen's job cuts come with enticing severance packages. The company is reportedly offering a generous payout of up to $400,000, contingent on the employee's tenure[5]. The aim is to ensure a socially acceptable transition for impacted employees.
The restructuring measures stand to save Volkswagen nearly €1.5 billion annually[4][5]. These savings, along with the anticipated cost reductions from the restructuring, will be invested in electric vehicle research and development, as well as battery investments[3]. In total, the restructuring is projected to generate €4 billion in annual savings by 2025 and €15 billion by 2030[3].
The entry into the electric vehicle market is a make-or-break moment for Volkswagen. The company aims to transform its Wolfsburg plant to entirely EV production by 2027[3]. It's survival and competitiveness against Chinese rivals depends largely on this strategic pivot[1][3]. The restructuring is also necessary to fund the massive investment needed to compete in the electric vehicle race.
Sources:
[1] Reuters.com[2] ntv.de[3] forbes.com[4] businessinsider.com[5] Bloomberg.com
The restructuring plan at Volkswagen includes offering vocational training for employees looking to exit the company, as part of their broader industry strategy aimed at reducing personnel costs. This comprehensive plan is projected to save Volkswagen nearly €1.5 billion annually, which will be invested in electric vehicle research, development, and battery investments, as well as financing the transition for affected employees through generous severance packages. The company's community policy during the reorganization is designed to ensure a socially acceptable transition for impacted employees.
