Volkswagen will cut 35,000 jobs… without layoffs

For several months, Volkswagen has been increasing communications regarding its difficult situation, and a prospect that has not been seen in Germany for decades has loomed: the closure of its production site. What followed, of course, was an unprecedented social movement, as some 100,000 employees of the automobile giant went on strike. However, these strikes are particularly costly for VW, and this is probably what allowed the IG Metall union to wrest this agreement. Ultimately, therefore, there will be no factory closures in Germany, at least until 2030.

35,000 jobs

The agreement, negotiated over 70 hours, will allow the Volkswagen group to make some 15 billion in savings between today and 2030, and will allow it to start again on a good basis to calmly consider the future, declared the big boss. VW is therefore withdrawing all its plans for layoffs, factory closures and salary reductions. On the other hand, 35,000 jobs will be lost in 5 years, in particular by not replacing people retiring, and by not renewing certain temporary contracts. The agreement also stipulates that production in Germany will be reduced by 700,000 units per year, and that the famous transparent factory in Dresden will no longer build cars. But an alternative will be found, possibly with an external partner. Finally, for the record, the agreement marks a symbolic decision: the Golf, VW's historic car if ever there was one, will no longer be produced in Germany, but in Mexico.