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VW announces "age regulation package": 5000 jobs could be eliminated

2021-03-14T20:01:26.493Z


In order to be able to put more money into promising areas, VW has decided on a fixed cost program. Accordingly, a large number of jobs are also affected.


In order to be able to put more money into promising areas, VW has decided on a fixed cost program.

Accordingly, a large number of jobs are also affected.

Wolfsburg - It is possible that the car manufacturer Volkswagen will lose a total of 5,000 jobs by the end of 2023.

This resulted in a key issues paper of the group.

The document published on Sunday had previously been agreed between the works council and the company. 

A “comprehensive retirement package” is intended to ensure that more people will leave the company by the end of 2023 - that is, without layoffs and job cuts.

The reason for the elimination of jobs as a savings measure is that VW * wants to use them to finance its efforts in the field of electromobility.

According to Volkswagen, the group assumes that up to 900 employees will opt for short-term early retirement models.

In addition, it is expected that “a low four-digit number” - usually in the order of 2000 to 4000 - will go into partial retirement.

This is now possible for employees born in 1964 or later. 

In addition, Volkswagen wants to freeze the workforce at the January level of this year as a further “central lever”.

However, the hiring freeze does not apply to “future areas” such as digitization and battery cell development.

Loss of job at VW: only socially acceptable job cuts permitted

A VW spokeswoman and a spokesperson for the works council unanimously emphasized that this was not a new round of job cuts.

The decisions are part of a “fixed cost program” with which the company aims to reduce its running costs by around five percent.

Before Christmas, the Volkswagen * Supervisory Board had principally backed CEO Herbert Diess for this project.

The management's commitment to implement potential new savings only within the framework of existing programs was seen as a stage victory for the works council.

At Volkswagen, jobs can only be cut in a “socially acceptable way” because the company will secure jobs until 2029.

* Merkur.de is an offer from IPPEN.MEDIA

Source: merkur

All news articles on 2021-03-14

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