Volkswagen is planning massive job cuts: 35,000 jobs gone by 2030!

Volkswagen is planning massive job cuts: 35,000 jobs gone by 2030!

Who would have thought that the lights could go out at Volkswagen (VW) in the coming years? The automotive giant is planning to cut an impressive 35,000 jobs by 2030. Around 20,000 departures have already been contractually agreed, which accounts for more than half of the planned cuts. This restructuring program, which is reflected in the “Future Volkswagen” agreement, was negotiated with the union in December last year. This means that almost 25 percent of the 130,000 jobs in Germany will be eliminated. But redundancies for operational reasons are excluded - VW is instead relying on early retirement and severance payments to make the reductions socially acceptable.

How did this drastic decision come about? At the last general meeting, a sense of crisis wafted through the ranks of shareholders. Sales problems, a significant drop in profits and the prospect of job cuts caused great pressure. Overcapacity and weak demand in key markets such as China and Europe are doing the rest. In light of these challenges, Chief Financial Officer David Powels reported that Volkswagen still had a lot of work to do to position itself as a competitive and sustainable company.

The details of the dismantling

The job cuts are proceeding according to plan, as Human Resources Director Gunnar Kilian confirmed at a recent works meeting. The departures depend on the length of service in order to fairly compensate the affected employees. The reduction primarily affects the six German locations of Volkswagen AG, which further increases the impact in the region.

• Stellenabbau bis 2030: 35.000
• Bereits vertraglich fixierte Austritte: 20.000
• Arbeitsplätze in Deutschland: 130.000
• Austritte durch Vorruhestand und Abfindungen: Keine betriebsbedingten Kündigungen
• Fortschritte im Sanierungsprogramm „Zukunft Volkswagen“

The challenges facing Volkswagen are no coincidence. High investments in electromobility and the associated personnel costs have further impaired competitiveness. Jard is reassessing the business model a necessary response to structural issues that have been on the table for years, such as low returns on electric vehicles and a high break-even point?

VW wants to become competitive by 2029 on its chosen course, which represents an enormous challenge given the current market conditions. The course has been set and the company hopes that the dismantling will pave a sustainable path into the future. Whether this actually turns out to be a successful maneuver remains to be seen.

The situation is certainly not easy for affected employees. Conversations about future prospects are in full swing, but while car manufacturers are exploring new paths, the human aspect does not go unmentioned. The balance between economic survival and social responsibility will be crucial for Volkswagen in the coming years.

The situation at Volkswagen represents a significant turning point not only for the company itself, but also for the entire industry. Only time will tell how well the car manufacturer masters this transformation while the competition does not sleep.

For further information on the background and details of the job cuts, read the reports from News38, ZDF today and daily news.