About 20 thousand Volkswagen carmaker employees will leave the company
About 20 thousand employees of the German automobile concern Volkswagen AG have agreed to be dismissed in connection with the cost-cutting package adopted by the plant, the Bild newspaper reported on June 3.
According to media reports, 2/3 of the dismissed employees will retire, while all those who have left will be paid severance pay depending on their length of service. In some cases, the amount can be up to 400,000 euros (about $456,000).
In addition to reducing staff, Volkswagen also intends to reduce the number of internship places provided annually from 1,400 to 600 starting in 2026. This will allow the automaker to save €1.5 billion (about $1.7 billion) annually on labor costs.
At the end of 2024, after negotiations, the board of directors and the Volkswagen employees' union agreed on a cost-cutting program. The agreement assumes that a total of 35,000 jobs will be cut by 2030.
On May 30, Volkswagen AG CEO Oliver Blume said that the company was in critical condition because production had not taken into account the dynamic development of the modern world. Among the problems, he highlighted the attitude of modern Germans to work. Blume noted that previous generations worked six days a week. Now, according to the head of the company, it is impossible to achieve achievements with a 20-hour work week and remote work.
On April 30, the carmaker announced that the Volkswagen Group's profit after taxes in the first quarter of this year amounted to €2.19 billion. It was clarified that this is 40.6% worse than in the same period last year.
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