The Volkswagen Group intends to eliminate half of the roughly 50,000 jobs that may be cut worldwide in Germany. "From today's perspective, around half of the adjustment requirement falls on Germany and the other half internationally – across a total of some 170 companies," CEO Oliver Blume said on Tuesday at a works meeting in Wolfsburg, according to the company. The Board of Management will "continue to rely as far as possible on voluntary personnel instruments," he added.
Blume cited retirements, mutually agreed departures, "natural fluctuation as well as a restrictive hiring policy." Partial retirement (Altersteilzeit) is also to be opened up "for further age groups," he continued. "We will discuss the concrete steps with the employee representatives."
The group CEO reiterated that the "frequently cited figure of around 50,000 jobs" worldwide is "not a target." "It is a theoretical calculation figure – derived from our costs. Today we are around 30 percent above the average of comparable companies," Blume said. The Group Board of Management stands "united behind the future plan."
In July, media outlets first reported for days on possible job cuts at the group as well as site closures. Blume now said the aim is to "create reliable prospects for all sites over the next six to twelve months." "For Emden, Hanover, Zwickau and Neckarsulm, we cannot yet present competitive capacity utilisation for the 2030s," he repeated. "But that does not mean that plant closures have been decided. They are always the last and most expensive solution."
From breaking news to thought-provoking opinion pieces, our newsletter keeps you informed & engaged.
By subscribing, you agree to our Terms & Conditions and Privacy Policy.
