Since China's new energy vehicles have achieved corner overtaking, the days of traditional Western car companies have begun to be tight. Following Tesla, the Volkswagen Group has also begun large-scale layoffs.
Volkswagen Group has launched the craziest "resignation amnesty" plan in history, and the departing employees can receive a severance bonus of up to 388,000 yuan!
In 2024, Q1 profits will be cut in half
In the first quarter of 2024, the Volkswagen Group's financial report became the fuse. Revenues fell slightly to 7.5 billion euros compared to the same period last year, but profits plummeted, from 5.75 billion euros last year to 4.6 billion euros, a drop of 20 percent. What is particularly problematic is that although the group's overall vehicle delivery volume increased by 3% year-on-year, electric vehicle sales in the European and American markets have been declining.
Such a bad start made the top management shout "unacceptable". Under the double blow of internal and external troubles, the public urgently needs a "heart booster" to maintain its operation. The management is determined to cut down the grass and eradicate the roots, and launch a big operation to "recast the glory".
Offered 6.975 billion yuan as a gift package to pry off the resignation
There is no more effective way for any business to curb the root causes of runaway costs than to lay off employees and cut wages. There is no doubt that such an approach will inevitably trigger a "human wave" of undercurrents.
Volkswagen was clearly prepared and decided not to fight the unprepared. In order to avoid bloodshed, the management touched the banknotes and took out 6.975 billion yuan, ready to send out big red envelopes, which is unprecedented!
If a senior German executive decisively "sweeps the floor away," in addition to receiving normal severance pay, he can also receive a special bonus of 50,000 euros (388,000 yuan)! Use cash to channel employees' dissatisfaction, release goodwill, and strive to create a warm picture of "high-standard treatment and high-standard exit."
But do you think that's all there is to it? That's a big mistake! This scene has just begun...
A crucial battle is inevitable in 2024
Why would Volkswagen gamble 6.975 billion yuan on its employees? The reason is that they must win the decisive battle in 2024.
As early as the end of last year, the group's human resources director made a bold statement: "To achieve this year's financial target, personnel costs must be reduced by 20%!" This is undoubtedly the most candid hint at layoffs.
Volkswagen is now bunching huge severance pay, just to get rid of the burden and ride alone to fight in 2024. The entire industry is in a period of great transformation, electric vehicles are growing wildly, and how traditional car companies can resolve the fuel crisis with limited resources has become the biggest problem of life and death. To be profitable is to win, it's as simple as that.
Among the big three automobiles, GM and Ford have not performed as well as they should. Volkswagen is also not immune, and Tesla is far behind in the field of electric vehicles. I had to fight to the death, and the personnel reduction was the final blow, and I was ruthless!
In any case, this investment of 6.975 billion yuan can be described as a big bet, betting on the overall vitality of Volkswagen in 2024!
Causing industry shocks and resigning armies?
This sensational personnel "weight loss technique" will undoubtedly cause quite a shock in the entire automobile industry.
The most direct blow is the loss of talent in the industry. Despite the high severance pay of 388,000 yuan, many veterans may still leave without hesitation. If a large number of senior personnel are evacuated, it will have a great impact on the operation of the enterprise.
At the same time, the talent market will also set off a wave of waves. After all, the financier has given the green light and spent hundreds of thousands of yuan to recruit talents, and the flow of personnel in the entire industry may intensify.
Another hidden danger is that the production order may be impacted. Old employees disperse in a hurry, and important positions may be in a "blank" for a while. How to fill in the position and how to make a smooth transition will become the big test.
Therefore, in the next period of time, all companies will be step-by-step, carefully planned, in addition to properly dealing with the reshuffle of talents, the key is how to seize new business opportunities...
The sword can not be wielded, and it has been prosperous
Against the backdrop of a severe global economic situation, whether Ford laid off 3,800 people or General Motors announced major layoffs, it is a clue to the chaos in the auto industry. Volkswagen's launch of the "resignation amnesty" this time, costing nearly 7 billion yuan, can be described as the largest and most powerful one.
From this point of view, the wave of layoffs is the best portrayal of the adjustment of the automobile industry. At the time of the surging wave of electric vehicles, it will undoubtedly become an industry trend to promote the conversion of old and new kinetic energy with the power of science and technology and drastically reduce redundant personnel.
However, for old employees, although a large number of talents will be "brushed off", leaving is a good time to get rid of the shackles and welcome a new chapter in life.
Obviously, such impulsive resignations are unprecedented, how to accept them, how to force the talent market to reshape and evolve, will be a big test. A tide of industry change is coming to us, and by taking advantage of this carnival with an opportunistic mindset, we may be able to seize the new opportunities it brings.
What I want to say is that the root cause of all this is that the old car companies are complacent and dare not embrace change, so they have come to this point, and layoffs are ultimately a symptom rather than a cure, and innovation is the only way out!