VW plans job cuts: 35,000 jobs in Wolfsburg affected!

VW plans job cuts: 35,000 jobs in Wolfsburg affected!

Volkswagen is facing a huge upheaval: the group plans to cut around 35,000 jobs by 2030, which corresponds to around a quarter of all jobs in Germany. The main plant in Wolfsburg is particularly affected News38 reported. The job cuts are taking place on a voluntary basis and should be carried out in a socially responsible manner without resulting in direct layoffs.

20,000 departures have already been contractually regulated, most of them through partial retirement or retirement. These departures also involve employees who have reached retirement age, and there are plans to open the 1969 cohort to partial retirement in order to encourage further departures, such as South German newspaper supplemented. VW Human Resources Director Gunnar Kilian explained that the company wants to live up to its responsibility towards its employees by offering individual advice and further training via the new “perspective workshop”. This project is intended to help employees reorient themselves professionally without suffering immediate financial losses.

The perspective workshop

In the “Perspective Workshop”, affected employees find support from job coaches who help them create a personal development plan. The aim is to make the transition as smooth as possible for the affected employees without them experiencing financial hardship. Creating new perspectives in a changing job market is more important than ever, especially in times when Volkswagen has to secure its competitiveness in an increasingly challenging environment.

The pressure on Volkswagen is constantly growing. The demand for traditional combustion engine models such as the Golf and the Tiguan has increased in recent years, so that special shifts have been run at the main plant. Nevertheless, the head of the group works council, Daniela Cavallo, warns that sales of the Golf could fall and problems with capacity utilization could arise in Wolfsburg, as production is to be relocated to Mexico. The factory's transformation to new electric models means a four-day working week may be considered from 2027.

Outlook for the future

Despite the major challenges, Volkswagen recently achieved record sales of around 332.3 billion euros. This is also reflected in an operating result, which grew by two percent from 2022 to 2023. What is interesting, however, is that expectations for 2024 had to be revised downwards because fewer vehicles will be sold. The sales market in Asia, especially in China, is particularly worrying, and competitive pressure from local manufacturers is increasing.

Volkswagen has recognized that it is not just about job cuts, but also about the future viability of the company. Therefore, cost reductions and operational savings are necessary in all areas in order to survive in global competition. Volkswagen boss Oliver Blume will attend the upcoming industry summit at the Federal Chancellery to discuss how jobs can be secured and competitiveness increased, while the Federal Ministry of Economics has announced measures to promote electromobility.