Volkswagen Job Cuts: German car maker Volkswagen is going to lay off 35,000 employees in Germany by 2030. The company is also going to reduce the number of its trainee employees from 2026.
Volkswagen Job Cuts: German car maker Volkswagen is going to lay off people on a large scale. The company plans to lay off 35,000 people in Germany by the year 2030. The company is going to take this step to save money because many companies are already facing challenges due to US tariffs.
Thousands of employees are going to take voluntary retirement
According to local media reports, more than 20,000 employees of Volkswagen have agreed to leave their jobs early by taking voluntary retirement. In a recent meeting held at the company’s headquarters in Wolfsburg, it came to light that to reduce the impact of layoffs on people’s lives, the company is giving them the option of voluntary retirement or voluntary retirement before time.
The company is also arranging for a severance package
To make things easier for the workers, the company is also arranging for a severance package for the employees affected by the layoff. This is a kind of compensation that the company or employer gives to an employee after firing or leaving the job. Volkswagen can give a severance package of up to $ 400,000 to the affected employees. However, it also depends on how long the person has worked in the company.
The number of trainee employees in the company will also be reduced
Not only this, the company will also reduce the number of its trainee employees from 1,400 to just 600 from 2026. By doing this, the company is trying to reduce its labor cost. The company aims to save about 1.5 billion euros every year. Apart from this, the salary of 1,30,000 employees will also not increase. The 5 percent increase in the already planned salary will be transferred to the company’s fund.
However, amidst all this, Volkswagen also says that it will not close any of its factories for the time being. This will also keep the trade unions and leaders calm. The company hopes that these steps will help keep production in Germany competitive and stable.
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