VW Savings Program: 20,000 Employees Agree to Job Waiver
Volkswagen, Europe’s largest car manufacturer, has launched a comprehensive savings program that envisions the reduction of 35,000 positions by 2030. About 20,000 employees have contractually agreed to waive their jobs, a significant step towards the recovery of the core brand VW.
Background and Goals of the Savings Program
- Job Reduction without Terminations: The reduction is to take place in a socially acceptable manner and without layoffs, primarily through early retirement and severance packages.
- Future Viability and Competitiveness: The goal is to make Volkswagen competitive and sustainable by 2029, which also includes improvements in factory costs in Wolfsburg.
- Profitability and Market Performance: The measures could enhance profitability and market performance through a more efficient corporate structure.
Details of the Job Reductions
- Early Retirement and Severance Packages: Two-thirds of the 20,000 employees will enter partial retirement; severance packages can amount to up to 400,000 euros.
- Reduction of Training Positions: The number of training positions will be reduced from 1,400 to 600, leading to expected savings of 1.5 billion euros.
- No Salary Increases and Changes to Vacation Pay: No salary increases for 130,000 VW employees in Germany; vacation pay will be waived.
Impact on Investors
These changes are crucial for investors as they affect profitability and competitiveness. A successful savings program could strengthen Volkswagen’s financial position and market standing. However, the future impact on employee satisfaction and innovation capacity remains to be seen.