EMCC European Monitoring Centre on Change

Volkswagen

Company/Organisation:
Volkswagen

Geographic Location

Country: Germany
Location of affected unit(s): Emden, Wolfsburg, Hannover, Salzgitter, Braunschweig, Kassel, Zwickau, Dresden, Chemnitz

Company

Sector: Manufacturing
Manufacture of transport equipment
29.10 - Manufacture of motor vehicles
Number Employed: 200000
Group: Volkswagen

Employment Effects

Announcement Date: 18-11-2016
Planned Job Reductions min: 20000
Planned Job Reductions max: 23000
Type of Restructuring: Internal restructuring
Employment Effect Start: 18-11-2016
Foreseen End Date: 31-12-2025

Additional Information

On 18 November 2016, Volkswagen, Europe's largest car producer announced to cut up to 30,000 jobs worldwide until 2025. Out of these jobs, up to 23,000 jobs will be lost in Germany. The affected sites are Emden, Wolfsburg, Hanover, Salzgitter, Braunschweig, Kassel, Zwickau, Dresden and Chemnitz. International job cuts will affect Volkswagen's sites in North and South America.

Volkswagen made clear that there will not be any direct dismissals. The company plans to reduce their staff through partial and early retirement. In addition, the number of temporary workers will be reduced.  Volkswagen and their works council negotiated an agreement ruling out compulsory redundancies at least until 2025.

Furthermore, Volkswagen offers up-skilling due to plans to strengthen the production of electric mobility. The restructuring also includes the creation of up to 9,000 new job in this promising field. According to the management, these jobs will be filled mainly with internal personnel.

Volkswagen struggled with low profits in the last years and even more since their emissions test scandal. The company wants to reduce their number of models and equipment variants.  

Already in March 2016, Volkswagen announced a cut of up to 3,000 jobs in Germany, see (Volkswagen 2016). At the moment, it is not clear if the 3,000 job cuts are additional or included in the number above.