Volkswagen to Cut Over 35,000 Jobs in Germany by 2030 as Part of Cost-Saving Strategy

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Volkswagen has announced plans to cut more than 35,000 jobs in Germany by 2030. This decision is part of a broader cost-saving and efficiency-improvement strategy. The job cuts are expected to be implemented in a socially responsible manner, avoiding mass involuntary layoffs. Instead, the reductions will be achieved through early retirements, buyouts, and voluntary departures.

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The job cuts are part of Volkswagen's 'Zukunft Volkswagen' (Future Volkswagen) agreement, which was reached after intensive negotiations with unions. The company aims to decrease administrative staff costs by 20% and has extended its partial retirement scheme to employees born in certain years. This move is seen as a necessary step to improve the company's financial health and competitiveness in the rapidly changing automotive industry.

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Volkswagen's decision to cut jobs is also linked to the company's shift towards sustainable mobility and electric vehicles. The job reductions are expected to lead to a short-term reduction in production capacity, but Volkswagen hopes to enhance efficiency and reduce costs in the long run. Additionally, the production of the VW Golf, which has been a staple in Germany for 50 years, is being moved abroad as part of these changes.

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Overall, while the job cuts represent a significant shift for Volkswagen's workforce, the company is striving to manage the transition in a way that minimizes disruption for its employees and aligns with its long-term strategic goals.