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Volkswagen Group offers termination agreements
"VW employees in Wolfsburg should leave with severance pay: the focus is on job cuts. Read about the planned cuts and the group's measures. #Volkswagen #Jobcuts"
Volkswagen Group offers termination agreements
The Volkswagen Group is planning to push ahead with job cuts in Germany and is now offering employees termination agreements. The goal is to reduce personnel costs in administration by 20 percent. The conditions for the severance payments should depend on various factors such as the length of service and the salary level of the employees. In contrast to the 2006 severance pay program, VW emphasizes that the current process follows “double voluntariness”. Simply reporting by the employees is not enough; the company must also agree. Particularly in areas such as design or IT, many employees could be considered essential.
The efficiency programs are intended to help the VW core brand realize savings of 10 billion euros by 2026. Although there is speculation about five-digit job cuts, there is no official information about the exact number of jobs that will be lost. There are currently more than 116,000 employees at Volkswagen AG's West German locations. VW has already imposed a hiring freeze and started a partial retirement program that is currently open to those born between 1965 and 1967.
In addition to the severance pay offers, VW is also offering a special bonus to make the effects of the termination agreements quickly noticeable. Employees who opt for a severance agreement between April 29 and May 31 will receive this bonus if the company agrees to let them go. The move to restructure and save costs is part of the company's larger goal to strengthen its competitiveness and ensure future viability.