Volkswagen Layoffs: Thousands of jobs to be cut, shuttering 3 plants

What’s going on at Volkswagen?

Volkswagen is reportedly set to eliminate tens of thousands of jobs and close at least three plants in Germany.

“This is the plan of Germany’s largest industrial group to start the sell-off in its home country,” Daniela Cavallo, the head of the automaker’s works council, told staff at the company’s headquarters in Wolfsburg.

Cavallo added that Volkswagen plans to reduce salaries by at least 10 per cent and freeze pay in both 2025 and 2026.

ADDITIONAL RESOURCES
• Can an employer lower your wage in Ontario?
• What Albertans need to know about pay cuts
• Can employers in B.C. cut a worker’s pay?

Employee outrage

Thousands of workers blew horns and whistles at Wolfsburg—insisting that Volkswagen shouldn’t shutter any plants.

Cavallo didn’t specify which facilities would be affected or how many roles would be axed as part of the restructuring.

Impact on Canadian staff

It remains unclear if any Canadian employees at Volkswagen will be let go.

According to reports, the automaker has more than 400 workers in the country.

Severance pay for Volkswagen Canada staff

In Canada, non-unionized employees at Volkswagen are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C. In some cases, this can also apply to independent contractors.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause.

It can be as much as 24 months’ pay—depending on a variety of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. 

An employer’s deadline to sign back a severance offer isn’t legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance for auto workers
• Severance entitlements in a recession

Major layoffs continue

Volkswagen’s plan to scale back its staffing levels comes amid a flurry of job cuts in 2024.

Big names, including Boeing, Nokia, RioCan, Deloitte, Loblaw, Ricoh, ApplyBoard, Qualcomm, Atlantic Music Group, and IBM, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Amazon Layoffs: Nearly 14,000 managers could be axed to cut costs
• CareerBuilder + Monster lays off 15% of staff: Report
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.