This company decides to fire 35000 employees, 20,000 agree to end…, no connection with Mukesh Ambani, Narayana Murthy, Noel Tata, Sundar Pichai, company is….
This company decides to fire 35000 employees, 20,000 agree to end…, no connection with Mukesh Ambani, Narayana Murthy, Noel Tata, Sundar Pichai, company is....
Automaker companies have also jumped into the massive layoff spree, with global automaker Volkswagen deciding to lay off as many as 35,000 employees in Germany by 2030. The significant job cuts are a part of the company's cost-cutting program amid the ongoing tariffs introduced by former United States President Donald Trump, looming over the German automotive industry, reported local news portal Bild. Notably, over 20,000 workers at Volkswagen have agreed to end their contracts early and take voluntary retirement. The reports cited a works council meeting at Volkswagen's Wolfsburg headquarters.
The job cuts will be made at the German plants of the company. Volkswagen is focusing on performing reductions in an acceptable manner, with the employees agreeing to the terms. Volkswagen's Severance Package
A German car manufacturer will provide severance payments to employees impacted by cost-cutting measures. The amount will vary depending on tenure, with potential payouts reaching USD400,000. While the total cost of these severance packages remains undisclosed, this information comes from a company staff meeting. Reduction In Apprenticeships
To reduce costs, the German automaker will cut 1,400 apprenticeships to 600 annually, beginning in 2026. Combined with significant job reductions, these measures are projected to save the company approximately €1.5 billion annually in labour expenses.
Apart from voluntary resignation, about 13 lakh employees in the company's core team are ready to accept the payment freeze. The automaker is also planning to give a five percent salary hike paid in two stages. Tariff Woes
As per an earlier report by Reuters, which cited the Ifo Institute, the German automotive industry further impacted last month following a fall in the business climate index after Trump tariffs.
'The confusion surrounding the U.S. tariffs is causing problems for the automotive industry in Germany,' Reuters quoted Anita Woelfl, Ifo sector specialist.
Facing weak European sales and intense foreign competition, Volkswagen, BMW, and Mercedes-Benz are negotiating with the US government to mitigate the effects of tariffs. Meanwhile, a recent report reveals declining business confidence in May 2025, with the business expectations index falling to -28.3 points from -25.2 points in April, and the business climate index dropping to -31.8 points from -30.7 points.
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