The Great VW Transformation: Downsizing by 35,000 Jobs and a Shift to Electrification
Part-time absence taken by thousands of VW staff members
Clearing the DeckAs the automotive industry barrels towards an electric future, Volkswagen is stepping up its game with an ambitious plan to slash 35,000 jobs in Germany by 2030. In a galloping race to achieve competitiveness, around 20,000 jobs have already been agreed upon through various exit options, taking a significant stride towards that lofty goal [1][2][3].
Out With the Old
Juicy Exit Packages
For those carving out a path for retirement, the company has dangled some enticing exit deals: up to 400,000 euros, according to one figment of journalistic imagination [1]. The amount of goodbye gold is linked to the length of service, making it a potentially lucrative farewell party.
Early Bird Catches the Worm
Considering two-thirds of the redundancies will be through early retirement, the 1969 and 1970 birth cohorts will be the next on the chopping block, with a whopping 30,000 jobs facing the ax [1].
Here's the Nitty Gritty
Hitting the Cost-Cutting Target
The power brokers at Volkswagen have announced a crushing savings program, with both sides agreeing to a bilateral qualified wage agreement after a grueling wage squabble [1][2]. Thankfully, the threat of plant closures and jobs cuts have, for now, been averted.
Staying the Course
Despite the strides made, the brand's finance boss, David Powels, insists there's still a long way to go if Volkswagen is to emerge a lean and agile competitor by 2029 [1].
The Final Frontier: Remaining Competitive
With the first steps of its transformation program successfully underway, Volkswagen is aiming to:
- Streamline manufacturing costs and boost its progressive trajectory;
- Dig deeper into electric vehicle technology and various innovative endeavors;
- Tailor flexible work arrangements to remain adaptable and competitive in the burgeoning automotive landscape.
[1] ntv.de
[2] chl/dpa
- In the bid to stay competitive in the automotive industry, Volkswagen is also focusing on vocational training programs as part of its community policy to cultivate a workforce with the skills necessary for the shift towards electrification and the businesses that thrive in this sector.
- With the savings program in place, Volkswagen plans to allocate funds towards vocational training for its employees, preparing them for new roles in the industry, particularly in the development and production of electric vehicles, thereby securing its financial future.
