Volkswagen Streamlining: 20,000 Workers Accept Exits, as Goal of 35,000 Job Cuts Looms
Multitudes of Volkswagen staff opt for part-time absence
Streamlining its workforce, Volkswagen is eyeing a goal of shedding 35,000 jobs by 2030 to boost competitiveness. So far, around 20,000 employees have agreed to the job cuts.
Personnel director Gunnar Kilian announced this at a works meeting in Wolfsburg, stating, "Around 20,000 exits from the company by 2030 are already contractually agreed." The company offers early retirement, age regulations, and severance agreements to achieve this comprehensive restructuring aimed at reducing indirect personnel costs. Employees who opt for early retirement or age regulations will not receive extra severance. Approximately two-thirds of the workforce are reportedly going for early retirement.
The severance package size, with a maximum of 400,000 euros, depends on the years of service with the company. Volkswagen remains optimistic about achieving its goal of reducing 35,000 jobs in Germany by 2030. Soon, attention will shift to the large birth cohorts of 1969 and 1970, with over a quarter of the 130,000 jobs at risk.
As the company inches closer to its goal, it seems like the crisis is "riding on a razor's edge," according to economist Reitz[1]. At the start of the year, a comprehensive savings program for the core VW brand was agreed upon after a tough wage dispute, averting plant closures and temporary job cuts in Germany.
With initial measures of the 'Future Volkswagen' agreement in motion, Kilian assured, "We are on track... accelerating our transformation." The company still has a significant amount of work ahead to become competitive and future-proof by 2029.
[1] Reitz: VW Crisis is "Riding on a Razor's Edge" - Source: ntv.de
- Volkswagen
- Job Cuts
- Severance Packages
- Employee Exits
- Workforce Reduction
- Competitiveness
- Corporate Restructuring
In light of the company's workforce reduction goal, Volkswagen is now focusing on offering severance packages to employees who choose to exit the company. The size of the severance package is determined by the number of years served with the company.
Moving forward, the company is preparing to address the large birth cohorts of 1969 and 1970, as a significant number of jobs could be at risk, as part of its ongoing corporate restructuring aimed at enhancing competitiveness and achieving long-term success.
