Volkswagen's Job Cuts: 20,000 Employees Take the Exit
Workers at Volkswagen temporarily step away from their jobs in large numbers
Gear up, folks! Volkswagen's reducing its workforce by a whopping 35,000 jobs by 2030, and it's already halfway there with 20,000 employees cracked the deal for a departure.
In the name of better competitiveness, Volkswagen's group has set the wheels in motion for cost-cutting. As Gunnar Kilian, their personnel director, shared at a works meeting in Wolfsburg, around 20,000 employees have agreed to up and leave VW by 2030, with about two-thirds opting for early retirement. They're swinging by severance packages or golden handshakes, as confirmed by a company spokesperson to ntv.de.
The severance amount varies depending on years of service with VW, and the company is optimistic about achieving its goal of slicing off a grand total of 35,000 jobs in Germany by 2030. Next up on the chopping block are the birth cohorts of 1969 and 1970, with over a quarter of the 130,000 jobs set to be culled[1][2].
Before the New Year, VW and the employee sides inked a sweeping cost-cutting bargain following a grueling wage feud. Plant closures and job cuts in Germany were previously looming, but for now, they've managed to avoid that axe, as per Kilian[3].
But hey, there's no coasting on this cost-cutting ride. David Powels, the brand finance director, emphasizes there's still a lot left to do to get VW where it needs to be[3]. The goal is to not only make VW competitive but also future-proof it by 2029.
Sources:* ntv.de* dpa
Goodbye, good people. Volkswagen's "Future Volkswagen" agreement is about moving forward, and that apparently means moving on for many[4].
Volkswagen | Cost-cutting program | Severance packages | Workforce reductions
- [1] ntv.de - Tens of thousands of jobs to go at Volkswagen by 2030
- [2] Bild newspaper - Over 20,000 VW employees leaving before 2030
- [3] chl/dpa - Volkswagen to cut 35,000 jobs by 2030
- [4] Volkswagen's cost-cutting program: Details, components, and impact on operations. [Enrichment Data]
Enrichment Data:
Overall:
Volkswagen's cost-cutting program, known as "Zukunft Volkswagen," involves several key components:
- Total Job Reductions: Volkswagen aims to reduce its workforce by up to 35,000 positions by 2030 through a combination of voluntary departures and attrition[1][3].
- Voluntary Departures: Specifically, approximately 20,000 employees have agreed to leave the company by 2030 through voluntary retirement schemes (VRS)[1][4].
- Severance Packages: While the exact details of the severance packages offered to departing employees are not specified in the available information, the program is designed to be socially responsible, indicating that the severance terms are likely to be favorable[1][4].
- Target Birth Cohorts: There is no specific mention of target birth cohorts in the available information. Instead, the focus is on reducing the workforce through voluntary retirements and early exit programs, which typically target older workers[1][4].
- Additional Cost-Cutting Measures:
- Annual Cost Savings: Volkswagen aims to slash €15 billion in annual costs by 2030 through a combination of workforce reductions, plant closures, and production shifts[3].
- Labor Cost Reductions: The company expects to reduce labor costs by €1.5 billion annually through these measures[2].
- Capacity Reduction: Volkswagen plans to reduce production capacity by 734,000 units across its German plants[2].
- Impact on Operations: The restructuring includes repurposing or selling certain factories, such as Dresden and Osnabrück, and shifting some production to lower-cost regions, like Mexico[3]. The company is also reducing apprenticeship opportunities significantly, from 1,400 to just 600 by 2026[4].
Volkswagen's cost-cutting program, "Future Volkswagen," includes vocational training as an element to equip employees with skills for potential career transitions, as they aim to make the company competitive and future-proof by 2029 [4]. As a part of this program, severance packages are offered to around 20,000 employees who opt for early retirement, which may influence skill gaps in sectors like finance, industry, transportation, and the automotive sector [1][4].
