Nearly 20,000 employees of the German car manufacturer Volkswagen (VW) have already agreed to leave the company early, the Bild newspaper reports. Around two-thirds of them will be retired. The car manufacturer is thus making progress in implementing a package of cost-cutting measures.
After difficult negotiations, the VW board of directors and the industrial union IG Metall, which represents the employees, agreed at the end of last year on a cost-cutting program for the main Volkswagen brand. It provides for the reduction of a total of 35,000 jobs by 2030, mainly at the group's plants in Germany. The layoffs must be carried out in a socially acceptable manner and those affected must agree to them.
Employees will receive severance pay depending on their length of service. This could amount to up to 400,000 euros, Bild explains. In addition to the job cuts, Volkswagen will reduce the number of internships offered annually from 1,400 to 600, starting in 2026. With these measures, the carmaker intends to save 1.5 billion euros annually in labor costs.
In addition, around 130,000 VW employees have agreed to a salary freeze. Instead of an increase, 5% will go to a special fund that will finance, for example, flexible working hours. At the same time, the payment of extended holidays is being canceled.
According to IG Metall, these measures have prevented VW plants from closing. However, given the ongoing weakness of the German carmaker, it is doubtful that this promise will last long, Bild concludes.