© Volkswagen Electronics Production | November 21, 2016
Thousands to leave Volkswagen in Germany
The Board of Management and General Works Council of Volkswagen have signed a pact for the future in Wolfsburg following negotiations. The pact aims to return the brand to a path of growth – but it also includes layoffs of thousands.
The program for the German plants – with about 120’000 employees – aims to improve the competitiveness of the Volkswagen brand and to make the company “fit for the future”, the company states in a press release. Volkswagen aims to have completely repositioned its brand by 2020. The company states that compulsory redundancies will be excluded and that the workforce will be reduced in a socially compatible way. At the same time, new jobs are to be created in future-oriented areas. Speaking clearly this means that Volkswagen will create 9’000 jobs in the future – and on the other hand cut 23’000 jobs in conventional areas in Germany. With the pact the company targets savings and efficiency improvements in all areas and at all locations in Germany, and expects a positive annual impact on earnings of about EUR 3 billion from 2020 onwards. The pact also aims to improve the productivity of the German plants by about 25% and to increase the operating margin to four percent by 2020. The 9’000 positions to be created in the future-oriented areas will be created at various locations – these vacancies will mainly be filled with existing employees, but the company will also recruit specialists from outside the Group. Over the next few years, Volkswagen will be cutting up to 23’000 jobs. the company says that this will be done via natural fluctuation and partial early retirement, taking the demographic curve into account. Volkswagen stresses that this reduction will be done without compulsory redundancies. The plants at Wolfsburg and Zwickau are to assume responsibility for the production of electric vehicles based on the Modular Electric Drive Kit (MEB). By investing in e-mobility, Volkswagen will create jobs with a secure future at these locations. In order to ensure efficient capacity deployment, a further model is to be produced at the Emden plant. At Wolfsburg, an additional Volkswagen Group vehicle will also be produced.