Background of the Cost-Cutting Program
Volkswagen recently launched a comprehensive cost-cutting program that aims to eliminate over 35,000 jobs by 2030. This program is a key part of the strategy to increase efficiency and reduce costs.
Reasons for the Cost-Cutting Program
The transition to electric mobility and the necessity for an optimized cost structure are significant reasons. Despite multiple downward corrections in forecasts for 2024, the group anticipates an operating profit of around 18 billion euros.
Measures of the Cost-Cutting Program
Planned measures include job cuts in technical development, a reduction in training positions, and the relocation of production of combustion models to Mexico, while Wolfsburg will shift to electric models.
Socially Acceptable Reductions
The job reductions are to occur without layoffs due to operational reasons, using options such as part-time retirement and severance payments, with an employment guarantee until 2030 agreed upon to protect employees.
Current Developments
- Salary Waiver from Management: The leadership is participating in the cost-cutting program by waiving salaries of up to 11%, which is expected to save over 300 million euros by 2030.
- Bonuses for Employees: Despite the cost-cutting measures, uncut bonuses are still being paid to employees in Germany, which have reached significant sums in recent years.
Conclusion
Contrary to the claim that employment is increasing, a comprehensive job reduction is indeed being carried out. These measures aim to help Volkswagen remain stable in the long term and prepare for future challenges by increasing efficiency and securing competitiveness in a rapidly changing market environment.