Volkswagen And The Union Decide To Eliminate 20,000 Jobs.

Europe’s largest car manufacturer, Volkswagen (VW), is moving forward with its job reduction plans. According to Gunnar Kilian, the head of human resources, approximately 20,000 departures from the company have been agreed upon by 2030. This accounts for more than half of the 35,000 job cuts planned for the same period. In December, the company and the union reached an agreement on a restructuring program for the main VW brand after extensive negotiations. Nearly a quarter of the 130,000 jobs in Germany are expected to be eliminated by 2030. The reduction will primarily occur through early retirement and severance pay, excluding terminations for business reasons. Kilian stated that the initial actions of the ‘Volkswagen Future’ agreement have been implemented successfully, putting them on the right path. The company aims to accelerate its transformation by making progress in plant costs in Wolfsburg and carrying out socially acceptable staff reductions at six locations in Germany. Although the CFO, David Powells, mentioned that they have not yet met their savings target and have a lot of work ahead of them, the goal is to make VW competitive and sustainable by 2029.