This is how VW wants to move forward with its job cuts

Volkswagen wants to cut a lot of jobs. In addition to partial retirement, the group relies on large retirement payments and a “turbo bonus”.

Wolfsburg – Volkswagen has adopted an austerity plan. As part of the performance plan of the VW brand, revenue contribution is expected to reach up to four billion euros by 2026, the brand aims for a positive revenue contribution of ten billion euros. To achieve this, VW wants to cut a lot of jobs.

It’s unclear how many jobs will be specifically affected by VW’s cuts. However, there is no exact number. “We are driven by cost, not people,” the company says. However, the goal is Reduce labor costs in management by 20 percent by 2026. “We are approaching the restructuring of Volkswagen AG with great care and focus,” explained Human Resources Director Gunnar Kilian in an internal communication.

VW wants to encourage workers to leave with up to 450,000 euros

There should be no shortage for practical reasons. Instead, VW relies on severance pay based on the principle of double commitment. This means that the employees and the company must agree to the separation. The group is offering lucrative deals, according to a report Business Week it emerges.

Accordingly, VW employees can receive a retirement payment of more than 450,000 euros. The maximum deductible is 404,700 euros. This applies to everyone who has been employed at Volkswagen for at least 20 years and is in the highest salary range.

VW pays a 50,000 euro “turbo bonus” to employees who decide to leave quickly

Anyone who decides too quickly to accept a severance payment could also receive a “turbo bonus” of 50,000 euros, reports say. Business Week. The offer is valid for everyone who has been with us for at least five years Volkswagen and report within two weeks.

According to the report, the minimum deductible is 17,700 euros. It applies to those who have been employed at Volkswagen for up to five years under a collective agreement. How much severance pay for managers is still unknown. However, these may be higher, report Business Week mentioning local people. In addition, managers can also receive a “turbo bonus”. Volkswagen itself did not want to comment on the severance pay.

Volkswagen is relying on partial retirements as a “sustainable, socially acceptable” way to cut jobs.

Despite A charge that also affected VW employees in Kassel, the group is mainly based on population. Within the group, the goal is to “maximize the use of the demographic curve”. VW’s management sees the potential for partial retirement as “a decisive factor in reducing labor costs at Volkswagen AG,” explained Human Resources Director Gunnar Kilian.

Accordingly, there is already a lot of interest in partial retirement. “With an average of 85 percent of their salaries in the active and passive phase, we offer our colleagues a transition to retirement with financial security,” explained the Director of Human Resources. “At the same time, partial retirement gives the company the opportunity to reduce staff in a sustainable, socially acceptable way.”