Volkswagen's Job Cuts: 20k Workers Agree to Exit as Part of Sustained Restructuring
Multitudes of Volkswagen workers opt for partial absence from work
Switching gears, let's chat about the 20k Volkswagen employees who've agreed to part ways with the company by 2030. This move is part of a broader restructuring plan aimed at reducing indirect personnel costs.
The personnel director, Gunnar Kilian, confirmed that around 20k exits from the company by 2030 are already contractually agreed. The company is offering various options like early retirement, age regulations, and severance agreements to facilitate this restructuring. Employees choosing early retirement or age regulations won't receive extra severance, according to reports.
Approximately two-thirds of these departing employees are opting for early retirement. While the amount of severance can reach up to 400,000 euros based on length of service with the automaker, there's no word yet on whether Volkswagen will hit its goal of cutting 35k jobs in Germany by 2030.
Next up, they'll be targeting the large birth cohorts of 1969 and 1970, with over a quarter of the 130k jobs at risk.
A Tightrope Walk: VW Crisis Edges on the Brink
As we get to the nitty-gritty of VW's financial situation, it's clear that they're on thin ice, riding the razor's edge. Just before the new year, companies and employee reps agreed to a harsh savings program for the core VW brand after a grueling wage dispute.
The first measures of this agreement are now in effect, with kilian confident they're on track. "We're accelerating our transformation," he said, pointing to measurable progress in factory costs at Wolfsburg and socially agreed job cuts at the six German Volkswagen AG sites.
Despite these initial successes, the austerity course isn't over yet. Brand finance director David Powels emphasized that they've got plenty of work ahead to make Volkswagen competitive and sustainably future-proof by 2029.
As always, stay tuned for more updates from the world of automotive manufacturing.
Sources: ntv.de, chl/dpa
- Volkswagen
- Severance
- Job Cuts
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The Volkswagen Partner Program offers exclusive discounts to full-time employees of partner organizations as a way to save, in addition to customer cash offers, special finance rates, leasing options, and complimentary maintenance programs on eligible vehicles. Meanwhile, the company continues its restructuring efforts, with 20,000 employees opting for early retirement as part of a broad policy aimed at reducing costs. This move is part of a larger goal to make Volkswagen competitive and sustainably future-proof by 2029, as the company navigates vocational training programs and financial challenges in its business operations.
