Volkswagen's Job Cuts: 20,000 Employees Take the Bailout
Multitudes of Volkswagen workers opt for part-time absences
With a need to stay competitive in the ever-evolving automobile market, Volkswagen (VW) has already convinced around 20,000 employees to part ways, out of its intended 35,000 job reductions by 2030. Gunnar Kilian, VW's personnel director, stated, "Around 20,000 exits from the company by 2030 are already contractually agreed" [1][2].
Some of these departures will be a result of partial retirement, with the rest involving severance packages or early retirements, according to VW's official statement on ntv.de. The ex-employees who are receiving assistance can get severance packages worth up to 400,000 euros, depending on their service tenure with the company [1]. Volkswagen is optimistic that it can reach its goal of eliminating 35,000 jobs in Germany by 2030.
The next set of baby boomers, born in 1969 and 1970, are in the company's crosshairs, as out of VW's 130,000 jobs, more than a quarter are slated to be cut [1]. The company doesn't seem to be taking things easy; claiming, "We still have a lot of work ahead of us for the future" [1].
The VW Crisis: A Close Shave On the Edge
On the brink of the New Year, companies and employee representatives negotiated a comprehensive savings program for the core VW brand after an arduous wage dispute. Threats of plant closures and job cuts were on the table initially, but they have been put on the backburner for now [1].
"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" [1].
Despite the advancements thus far, VW still has a long way to go in implementing its austerity course, emphasized brand finance director David Powels. Their ultimate objective is to make VW competitive and sustainably future-proof by 2029 [1].
Sources:
- ntv.de, chl/dpa
- Volkswagen
- Savings Program
- Job Cuts
- Severance Packages
The community policy at Volkswagen includes provisions for vocational training and severance packages for employees who are being let go as part of the job cuts aimed at reducing the workforce by 35,000 by 2030. As the company strives to remain competitive in the automotive industry, it is also working on implementing a comprehensive savings program to make the business financially sustainable for the future.
