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Multitudes of Volkswagen workers opt for partial, temporary absences

Thirty-five thousand jobs face elimination

Upon employment status, a report discloses potential severance packages worth up to 400,000 euros.
Upon employment status, a report discloses potential severance packages worth up to 400,000 euros.

Volkswagen Slashing Jobs: 20,000 Employees Bid Adieu to Save Costs

Multitudes of Volkswagen workers opt for partial, temporary absences

Get the latest scoop on Volkswagen's aggressive job-cutting strategy!

In a bid to boost competitiveness, the German auto giant is chopping jobs like never before. A whopping 20,000 employees have already agreed to take the exit, with more to follow.

Volkswagen's board member for personnel, Gunnar Kilian, spilled the beans during a works meeting in Wolfsburg. He revealed that around 20,000 voluntary exits from the company by 2030 are already locked in. Nearly two-thirds of these Goodbyes are through partial retirement, Bild reports. Employees are also being offered severance packages or early retirement, confirmed a VW spokesperson on ntv.de.

The exit package? Up to €400K, based on years of service with the automaker! Volkswagen is optimistic it will reach its goal of axing 35,000 jobs in Germany by 2030. Next up? The large birth cohorts of 1969 and 1970, with over a quarter of the 130,000 jobs expected to go.

VW's in hot water, folks! Just before the New Year, the company and employee sides hammered out a comprehensive savings program for the core VW brand following a grueling wage dispute. Plant closures and job cuts in Germany were on the table, but for now, they've been put on ice.

According to Kilian, "The first measures of the 'Future Volkswagen' agreement are taking effect, and we're making progress." Industrial costs in Wolfsburg are being slashed, and job cuts are being negotiated at Volkswagen's six German sites. But, there's still a long road ahead on the savings path, cautions brand finance director David Powels: "We've still got a lot of work to do for the future."

Volkswagen aims to turn profitable and future-proof by 2029. Stay tuned for more updates on this ongoing saga!

Sources: ntv.de, chl/dpa

  • Volkswagen
  • Job Cuts
  • Severance Packages
  • Restructuring

Additional Facts:

  • VW plans to cut around 35,000 jobs in total by 2030, primarily in Germany.
  • Comprehensive savings program in place following a tough wage dispute.
  • The cost-cutting measures are expected to save Volkswagen around €1.5 billion (£1.26 billion) per year.
  • The job cuts will be implemented across six German sites, including Wolfsburg.
  • VW's cost reductions are driven by market challenges, financial pressures, and US tariffs.
  • Reduced apprenticeship opportunities for young people from 1,400 to 600 by 2026 as part of the broader restructuring.
  • Agreements with trade unions, such as IG Metall, ensure no German factories are closed and provide negotiated pay rises and bonuses.
  • In line with its cost-cutting measures, Volkswagen is offering vocational training employees severance packages as part of the voluntary exit plan, with up to €400K in exit packages based on years of service.
  • As part of its restructuring plan, Volkswagen aims to cut around 35,000 jobs in total by 2030, which includes negotiations on job cuts at six German sites, potentially impacting the company's community policy and training programs in the industry and finance sectors of the business.

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