Volkswagen's Major Job Cuts: 20,000 Employees Taking Severance or Early Retirement
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Numerous Volkswagen staff opt for part-time work absences
In an effort to boost competitiveness and cut costs, Volkswagen (VW) aims to shed around 35,000 jobs in Germany by 2030. Currently, over 20,000 employees have agreed to job cuts, as per personnel director Gunnar Kilian.
Securing the Exit: Options for Affected Employees
VW is offering various options to these departing employees, such as early retirement, age regulations, and severance agreements as part of the company's comprehensive restructuring process aimed at reducing indirect personnel costs.
Many of these employees are opting for early retirement, with two-thirds preferring this option, according to Bild newspaper. The severance amount depends on the employee's length of service with the automaker. VW is confident in achieving its goal of reducing a total of 35,000 jobs in Germany by 2030.
Targeting the Future
As part of the multi-billion dollar savings program for the core VW brand, plant closures and job cuts in Germany have been averted. Brand finance director David Powels confirmed that they still have a lot of work ahead to make VW competitive and future-proof by 2029.
The Big Picture
Volkswagen's cost-cutting strategies encompass job reductions, generous severance packages, and salary freezes. The company plans to reduce its workforce at German plants, slash apprenticeship opportunities, and defer a planned 5% wage increase into a fund supporting flexible working time models.These efforts are intended to generate significant savings, as VW faces increasing competition from China and transitions to electric vehicles.
[1] ntv.de, chl/dpa
- Volkswagen
- Savings Program
- Job Reduction Plans
- Severance Payments
- Cost Savings and Employee Salary Adjustments
- Apprenticeship Reductions
- Competition and EV Transition
- Volkswagen's community policy for its restructuring strategy includes offering vocational training programs for those who opt for early retirement, aiming to smooth the transition for affected employees in the business sphere.
- As part of the comprehensive plan for reducing indirect personnel costs, Volkswagen is venturing into finance matters, providing substantial severance agreements to its employees, with the amount dependent on the employee's length of service.
