Volkswagen plans drastic job cuts: 35,000 jobs in danger!

Volkswagen plans drastic job cuts: 35,000 jobs in danger!

Wolfsburg, Deutschland - In the automotive industry of northern Germany it rumbles tremendously. Volkswagen (VW) faces a massive job cuts. By 2030, the group plans to reduce a total of 35,000 jobs. Around 20,000 of these leaks are already contractually fixed. You can only say: here you can turn down properly! These cuts affect more than a quarter of the 130,000 jobs that VW offers in Germany. For example, news38.de reported that operational terminations are by no means intended. Instead, the company relies on early retirement and severance payments to make the dismantling socially acceptable.

Many employees see the development with mixed feelings. The partial retirement has been expanded, and to support younger employees, severance payments for volunteers are offered. "It is a tough but necessary step," said HR board Gunnar Kilian at a meeting in which CEO Oliver Blume and brand manager Thomas Schäfer were present, but no comments. The previous strategy, which was recorded in a renovation program for the core brand VW, aims to set up the company until 2029.

economic challenges

The car manufacturer's step is not only an internal measure, but also a reaction to the economic framework. The group struggles with high costs and overcapacity, especially in the e-car locations in Zwickau and Emden. Sales and profits in China break down, while the demand for combustion models such as Golf and Tiguan remains stable. These developments let the alarm bells ring: According to [Stern.de] (https://www.stern.de/wirtschaft/news/stellenabbau-20-000-vw-mit employee-jobs-jobs- 35777702.html), this not only relates to the number of positions, but also throws the future of many works in Germany.

According to the works council, at least three works are on the brink, and the possible closure of production facilities could have significant consequences. Every third production facility could close and possibly even lost 10,000 jobs. The recent company meetings not only showed the extent of the Situation, but also fueled the fears of the employees. "We have to ensure that a socially acceptable breakdown is successful," said works council chief Daniela Cavallo, who also warned of a potential four-day week from 2027 if the utilization problems should stop.

A look into the future

What remains of these challenges? VW is determined not to fall back in the race for market share. The vehicle manufacturer achieved a record sales of 332.3 billion euros in 2023, which corresponds to an increase of 15.5 percent compared to the previous year. However, the forecasts for 2024 were corrected downwards because a decline in car delivery is expected. This makes it clear that VW has to fight the increasing competitive pressure in particular by Chinese car manufacturers without neglecting its own cost structure.

The group emphasizes that the process of savings is far from complete. Many tasks are waiting to achieve the ambitious goals. On the upcoming industrial summit, in which Chancellor Olaf Scholz will also take part, the necessary measures are discussed to secure jobs and to promote electromobility. The Federal Ministry of Economics has already announced some initiatives to support BMW and Volkswagen in this crucial phase, including not least tax incentives for electric vehicles.