Kilian did not say how many managers were affected. He also did not quantify the financial contribution of the board, but it was “disproportionate to the contributions of management and employees.”
Shortly before Christmas, after a long struggle, the company and the union agreed on a restructuring program that would… Reduction of 35,000 jobsn in Germany by 2030. The reduction should take place without any redundancies for operational reasons.
Job cuts are particularly affecting Lower Saxony
According to Kilian, 29,000 of these jobs, or more than 80 percent, will be eliminated in Lower Saxony alone. VW has around 130,000 employees across Germany, and around 100,000 in Lower Saxony. Savings programs and the latest collective agreement are expected to reduce costs by more than 4 billion euros annually. Of this, 1.5 billion euros are attributable to savings in labor costs.
Europe’s largest car manufacturer is suffering from low utilization of its factories and wants to reduce the technical capacity at its German locations by over 700,000 vehicles.