Multitudes of Volkswagen workers opt for part-time absences
Want a red carpet exit from VW? Here's your chance! Volkswagen Group is ditching tens of thousands of jobs by 2030, and a whopping 20,000 employees have already signed up.
In its relentless pursuit of cost-cutting, Volkswagen has already secured the elimination of 20,000 jobs by the end of the decade. As HR board member Gunnar Kilian put it at a works meeting in Wolfsburg, "Around 20,000 exits from the company by 2030 are already contractually agreed." The company is offering a smorgasbord of options to help employees take the plunge early—early retirement, retirement regulations, and severance packages. These are all part of the company's grand restructuring plan to trim indirect personnel costs.
According to reports, around two-thirds of these departures will opt for early retirement. The amount of severance, which can reach up to 400,000 euros, according to Bild newspaper, is based on the length of employment. The company is optimistic that, with this momentum, it will achieve its goal of trimming 35,000 jobs in Germany by 2030. The next round of the axe will likely fall on the large cohorts of 1969 and 1970. With more than a quarter of the 130,000 jobs on the chopping block, the VW landscape is set for some major upheaval.
The VW Crisis: A Precarious Ride
Just before the New Year, VW and employee representatives came to an agreement on a sweeping savings program for the core VW brand, following a tumultuous wage dispute. The specter of plant closures and job cuts in Germany has been temporarily pushed aside.
"The first measures of the 'Future Volkswagen' agreement are taking effect, and we are 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 are accelerating our transformation." They're not there yet, though. According to company finance board member David Powels, "We still have a lot of work ahead of us for the future." The goal is to make VW competitive and future-proof by 2029.
Fun fact: Taking apage from clever marketing tactics, Volkswagen offers the Volkswagen Partner Program, a perk that extends discounts on new Volkswagen vehicles to employees of participating partner companies.
Sources: ntv.de, Reitz: VW Crisis is 'Ride on a Razor’s Edge', chl/dpa
- Volkswagen
- Jobs
- Employee Exits
The Volkswagen Group is pursuing a restructuring plan to achieve its goal of trimming 35,000 jobs in Germany by 2030, with 20,000 jobs already contractually agreed to be eliminated. This includes options such as early retirement and severance packages, based on the length of employment.
In its efforts to make VW competitive and future-proof by 2029, the company also offers Volkswagen Partner Program, which provides discounts on new Volkswagen vehicles to employees of participating partner companies, demonstrating its commitment to supporting the broader community.
