VW's Downsizing Move: Volkswagen to Offload 14K Employees via Early Retirement by 2030
Volkswagen plans to eliminate 14,000 positions by the year 2030.
Hey there! Auto giant Volkswagen is shaking things up with a new early retirement scheme that's expected to kick 14,000 workers to the curb by 2030. As reported by Reuters, this whopping figure includes around 5,000 retirees and 9,000 voluntary departures.
According to a works council newsletter, Volkswagen's personnel chief, Gunnar Kilian, declared at a June works meeting that approximately 20,000 colleagues will be bidding adieu to the company by 2030. A whopping 1,300employees have already accepted severance offers, willing to take an early exit.
All in all, Volkswagen intends to tear its German workforce down by 35,000 jobs. However, it's not all doom and gloom for the remainder of the current 130,000 workers... At least, not yet. Employment protection will remain in effect until the end of 2030, thereby ruling out any layoffs due to operational reasons.
Interestingly, this mass exodus of employees is part of a bigger plan to slash operational and labor costs by a jaw-dropping £1.2 billion every year[3]. The scheme mainly focuses on early retirement and voluntary redundancy to minimize forced redundancies and prevent plant shutdowns[3][5].
Moreover, Volkswagen has already secured agreements for around 20,000 employees to leave on their own terms, with many opting for a glide-path to retirement[3][4]. The rest of theJob cuts will be handled through a combination of early retirement, severance packages, and other measures to provide a smooth transition for departing employees.
For once, production workers might get the opportunity to wave goodbye too. Severance packages could become available for them starting summer 2026[2]. On top of that, Volkswagen plans to slash apprenticeships and introduce other cost-cutting measures to hit its financial targets by 2029[5].
In a nutshell, VW's strategy aims to boost the company's cost efficiency and keep it competitive while dealing with the stormy economic waves and shifting market demands.
Community policy and employment policy will need to be revised to accommodate the 14,000 employees taking early retirement by 2030 as part of Volkswagen's downsizing move. This significant shift in the workforce could lead to changes in the manufacturing, industry, finance, and business sectors due to the large number of departing employees.
