VW swears employees to 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 to 2,000 shop stewards from IG Metall in Wolfsburg on Monday, according to a post on the VW intranet obtained by dpa. "We cannot do without noticeable cuts. We have to tackle the critical issues, including personnel." "Der Spiegel" had previously reported.
Efficiency program for the core Volkswagen brand
Chief Human Resources Officer 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 arrangements in the coming years." At the same time, he made it clear that staff cuts were unavoidable. "We have to reduce our costs and manage with fewer staff in order to remain a future-proof employer."
Group CEO Oliver Blume announced in an interview with the "Frankfurter Allgemeine Zeitung" on Friday that the planned savings program would also involve a reduction in personnel, but that this would be done in a socially responsible manner. VW is planning an efficiency program worth billions for the core Volkswagen brand. By 2026, it is expected to generate ten billion euros in savings and increase the brand's return on sales from 3.4 to 6.5 percent.
The details of the program have been under negotiation with the Works Council since October. "All the necessary measures are on the table," said Schäfer. "Now we have to finalize the key points of the agreement together with the employee side by the end of the year."
Head of the Works Council names red lines
As an immediate measure, VW had already imposed a hiring freeze for the most important locations at the beginning of November. "But that alone is not enough," said Kilian. However, it is not just about making cuts to the workforce. "The efficiency program is not just about personnel measures. The majority of the 10 billion in the VW brand will be achieved through other measures."
At the meeting, Works Council Chairwoman Daniela Cavallo reiterated the red lines she had already mentioned: "No departure from our collective agreements and job security until 2029!" Dismissals for operational reasons are ruled out until this date.
Volkswagen's brand boss, Thomas Schäfer, acknowledged the need for personnel cuts due to the critical situation, stating, "We cannot do without noticeable cuts." The CEO of Volkswagen's core brand, Oliver Blume, also mentioned a planned reduction in personnel as part of the efficiency program, aiming to save billions and increase the brand's return on sales.
Source: www.dpa.com
