Volkswagen AG Makes Progress in Restructuring Efforts, Reaches Milestone in Early Retirement Agreements
Volkswagen AG has made significant progress in its restructuring efforts, with over 20,000 employees having agreed to early retirement, according to a report by Bild, citing sources within the company. This milestone was announced by the management board at a meeting with employees in Wolfsburg on Tuesday.
The company’s plan, agreed upon with the unions at the end of last year, aims to reduce the workforce in the core brand Volkswagen by a total of 35,000 employees by 2030, primarily in German plants. The restructuring process will be socially responsible, with affected employees required to give their consent. In exchange, they will receive a severance package, the amount of which is determined by the length of their service with the company. According to Bild, this could amount to up to 400,000 euros.
The company’s personal director, Gunnar Kilian, did not provide a total figure for the severance packages at the meeting, but the achievement of the 20,000 milestone is seen as a significant step towards reaching the overall goal. The next step will focus on the birth-year groups of 1969 and 1970, with the company confident that the target will be met.