Automobile company Volkswagen Group is planning to reduce costs on a large scale. The company may lay off about 1 lakh employees in the coming time. Apart from this, preparations are also being made to close many factories. In fact, Volkswagen Group CEO Oliver Bloom has proposed major changes in the company’s management board meeting.

Under this plan, the company wants to make a big reduction in its total number of employees. At present, about 6.57 lakh employees work in Volkswagen Group, but the company’s target is to reduce it to about 5.57 lakh. This means that about 1 lakh jobs may be affected in the coming time.

What is the reason for the cut?

This proposal will be discussed in detail in the supervisory board meeting to be held next week. If the board approves this plan, it could be one of the biggest cuts in Volkswagen’s workforce. The company believes that it has become necessary to reduce expenses to maintain competition in the changing auto market.

The company not only wants to reduce the number of employees, but is also preparing to close many of its production centres. A proposal has been made to lock four factories in Germany. These include Audi’s Neckarsulm unit, Volkswagen plant in Hanover, Zwickau and Emden plants. Along with this, the company is also working on a separate plan to set up a new component plant.

This is the target of the company for the next 10 years

Volkswagen’s target is to reduce its total costs by about $12.5 billion i.e. about Rs 1.20 lakh crore in the next 10 years. The company believes that by reducing expenses, it will be able to face future challenges in a better way and will be able to invest more in new technologies including electric vehicles.

Volkswagen is currently facing many challenges. Tariffs imposed by America, increasing competition from China’s electric car manufacturer BYD and rapid changes in the global auto market have increased the pressure on the company. This is the reason why the company is moving towards changing its entire business model.

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Volkswagen job cuts: The German car maker Volkswagen is going to be trimmed by a large scale. The company’s plan is to lay 35,000 people in Germany by 2030. The company is going to take this step to save money because many companies are already facing challenges due to American tariffs.

Thousands of employees are going to take voluntary retirement

According to local media reports, more than 20,000 Volkswagen employees have agreed to leave the job early after taking voluntary retirement. Recently, a meeting held at the company’s headquarters in Wolfsburg revealed that the company is giving them the option of voluntary retirement or premature retiring to this.

Company is also making arrangements for serence package

To ease the workers, the company is also arranging a serence package for the employees affected by the layoffs. This is a kind of compensation, which the company or employer gives an employee after avoiding jobs or leaving the job. Volkswagen can provide a serence package of up to $ 400,000 to the affected employees. However, it also depends on who has worked in the company for how long.

Trainee employees will also be less in the company

Not only this, the company will also reduce its trainee employees from 1,400 to only 600 taxes from 2026. By doing this, the company is trying to reduce its labor cost. The company aims to save about 1.5 billion euros every year. Apart from this, salary of 1,30,000 employees will also not increase. The increase of 5 percent in the planned salary in advance will be transferred to the company’s fund.

However, in the midst of all this, Volkswagen also says that it will not close any of its factory at the moment. With this, trade unions and leaders will also remain calm. The company hopes that these steps will help to keep the production in Germany competitive and stable.

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