Approximately 20,000 VW staff opt for buyout plan during corporate restructuring
Germany's Volkswagen Workforce Reduction: A Progress Update
It's full steam ahead for Volkswagen's workforce reduction plan in Germany, with the auto powerhouse making significant strides towards its cost-cutting objectives, primarily aimed at paving the way for an electric future. Here's the latest on the ongoing restructuring Projekt Typhoon:
Job Cuts
Volkswagen is set to reduce its workforce in Germany by a whopping 35,000 employees by the year 2030. As of June 2025, over 20,000 workers have taken the voluntary redundancy offer, with 15,000 more to go by the stated target date[1][2][3].
Cost Reduction
The labor cost cuts are part of a broader strategy to save around 1.5 billion euros annually. This initiative aligns with a wage settlement agreement that was struck in December 2024 and remains in effect until 2030[2].
Transition to Electric Vehicles
Volkswagen is spearheading the shift to electric vehicles. The Wolfsburg plant, for instance, is expected to transition to EV-only production from 2027. This transition may involve a temporary four-day work week to cater to the evolving production demands[3].
Plant Adjustments
The company is switching the production of the combustion engine Golf from Wolfsburg to Mexico, starting in 2027. However, the plant will continue to produce electric vehicles, including a potential successor to the T-Roc compact SUV[3].
Apprenticeships and Employee Agreements
To further cut costs, Volkswagen plans to reduce the number of apprenticeships from 1,400 to 600 annually, starting in 2026. Core team employees are also accepting a pay freeze as part of the restructuring efforts[2].
So, it's a complex dance between job cuts, cost reductions, and the transition to electric vehicles - but Volkswagen's strategy is proving effective thus far. Stay tuned for more updates as this seismic shift in the auto industry continues to unfold.
In light of Volkswagen's workforce reduction plan, the finance sector is closely monitoring the auto giant's efforts to save approximately 1.5 billion euros annually, a significant figure in the industry. Additionally, the shift towards electric vehicles in the transportation industry extends to the Volkswagen Wolfsburg plant, which aims to produce EVs exclusively from 2027, possibly even temporary adjusting to a four-day work week.
