Volkswagen plans to cut another 12,000 jobs by 2030 — Der Spiegel

In Germany, Volkswagen plans to cut an additional 12,000 jobs by 2030. The automaker announced this after a meeting with employees in Hanover, Der Spiegel reports.

The new plan concerns Volkswagen AG, which includes the core brand, the components division and the group’s corporate positions. Two years ago, the company had already agreed to cut more than 35,000 jobs by 2030. The current plan provides for the elimination of another 12,000 positions in addition to that figure.

Negotiations on transfer companies

Volkswagen said the cuts should take place in a socially acceptable manner. During the upcoming round of collective bargaining negotiations, the group wants to discuss establishing so-called transfer companies — transitional structures for employees whose positions are being eliminated. Their participants may be helped in finding new jobs, including through vocational training.

Moving to such structures is to be voluntary. Their duration, working conditions and possible severance payments are to be agreed with employee representatives. It is currently unknown how many Volkswagen employees may move to transfer companies. Collective bargaining negotiations will begin on November 24.

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Union’s position

The company also considers maximum use of voluntary departure mechanisms and a reduction in labor costs necessary. So far, Volkswagen has mainly used partial retirement and compensation payments.

The IG Metall union categorically rejected the proposal for transfer companies. It called it a breach of commitments in collective bargaining policy without an adequate legal basis. Thorsten Gröger, head of IG Metall’s regional branch, said that shareholders must assume responsibility before contributors’ funds are used. The union stressed that instead of transferring employees to such structures, Volkswagen should secure the company’s future through new products, markets and technological leadership.

Volkswagen also said that despite the difficult situation, it will maintain the collective agreement on the future, which provides employment guarantees until the end of 2030.