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[BUSINESS] · Germany · 37 sources

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Volkswagen faces massive job cuts and potential strikes

Volkswagen is undergoing a major restructuring program aimed at achieving double-digit billion-euro savings. The company plans to reduce its workforce significantly, with more than 35,000 jobs already scheduled to be cut by the end of the decade, plus an additional 12,000 positions at the core brand by 2030. Some reports suggest the total restructuring could involve the loss of approximately 50,000 jobs.

In response to cost-cutting measures, Volkswagen has terminated ten collective wage agreements, affecting approximately 130,000 employees. This move has led the IG Metall union to threaten large-scale strikes starting in January if the company does not rescind these decisions. IG Metall district manager Thorsten Gröger stated that workforce sentiment has reached a “boiling point” and warned of a conflict that could be larger than anything the corporation has ever experienced.

To manage the workforce reduction, management is considering the use of transfer companies to help employees find new employment. While the company maintains it is adhering to a future tariff agreement that ensures job security until 2030, the union has labeled the move to renegotiate agreements as a “breach of trust.” Formal tariff negotiations are expected to begin in late November.

Entities

AutoUnion Sachsen GmbH · Germany · IG Metall · Michael Kretschmer · Oliver Blume · Thorsten Gröger · Volkswagen · Volkswagen AG · Zwickau

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Sources

ITM Power Aktie: Rechenzentren-Traum? [www.kapitalmarktexperten.de]