The Volkswagen Group wants to save ten billion euros by 2026. The board announces that this will not work without staff cuts.
Europe’s largest car manufacturer Volkswagen is preparing its workforce for cuts, including in personnel. “The situation is very critical,” said brand boss Thomas Schäfer on Monday in front of 2,000 IG Metall representatives in Wolfsburg, according to a post on the VW intranet that was available to the dpa. “It won’t work without noticeable cuts. We have to address the critical issues, including personnel.” The “Spiegel” had previously reported.
Efficiency program for the Volkswagen core brand
Human resources director Gunnar Kilian announced to the shop stewards: “We must consistently see the demographic curve as an advantage and make maximum use of partial retirement and retirement regulations in the coming years.” At the same time, he made it clear that cuts in personnel were inevitable. “We have to reduce our costs and get by with fewer staff in order to remain a future-proof employer.”
CEO Oliver Blume announced on Friday in an interview with the “Frankfurter Allgemeine Zeitung” that the planned savings program would also involve a reduction in staff, but that this should be done in a socially responsible manner. VW is planning a billion-dollar efficiency program for the core Volkswagen brand. By 2026, it should bring ten billion euros in savings and increase the brand’s return on sales from 3.4 to 6.5 percent.
The design has been under negotiation with the works council since October. “All necessary measures are on the table,” said Schäfer. “Now we have to finalize the key points of the agreement together with the employees by the end of the year.”
Works council boss names red lines
As an immediate measure, VW had already imposed a hiring freeze for its most important locations at the beginning of November. “But that alone is not enough,” said Kilian. But it’s not just about cuts in the workforce. “The efficiency program does not rely solely on personnel measures. The majority of the 10 billion in the VW brand is provided through other measures.”
At the meeting, works council leader Daniela Cavallo reiterated the red lines she had already mentioned: “No moving away from our collective agreements and job security until 2029!” Terminations for operational reasons are excluded until this point in time.
Source: Stern
