Volkswagen's Job Cuts: The breakdown of 35,000 positions by 2030
Many employees of Volkswagen opt for part-time employment options
In an effort to compete in the ever-evolving automotive industry, Volkswagen is shedding thousands of jobs by 2030. So far, about 20,000 employees have agreed to job cuts, as outlined by Personnel Director Gunnar Kilian at a works meeting in Wolfsburg.
The VW Group is offering a variety of options to achieve these reductions, including part-time retirement, age regulations, and severance agreements as part of their comprehensive restructuring plan. Employees choosing part-time retirement or age regulations will not receive additional severance pay. According to Bild newspaper, around two-thirds of employees are opting for part-time retirement.
The severance package varies depending on the length of service with the automaker. Reports[1][2] indicate that the severance pay can reach up to $400,000 or approximately 400,000 euros.
Volkswagen remains optimistic that it will meet its goal of cutting 35,000 jobs in Germany by 2030. The next target will be the large birth cohorts of 1969 and 1970, with over a quarter of the 130,000 positions set to go.
Additional Measures
Volkswagen will further reduce costs by cutting apprenticeships from 1,400 to 600 starting in 2026[1]. Additionally, about 130,000 employees have agreed to a salary freeze, with planned raises deferred into a fund supporting flexible working time models[1][3].
These measures form part of a broader strategy to optimize operations and reduce labor costs. Volkswagen aims to become not just competitive, but future-proof by 2029. While the initial steps are being taken, the company still faces significant challenges ahead on its austerity course[4].
Sources:1. ntv.de2. chl/dpa3. Spiegel4. Reuters
- Volkswagen
- Job Cuts
- Severance Packages
- Salary Freeze
- Reduction of Apprenticeships
In addition to the job cuts, Volkswagen is reducing apprenticeships from 1,400 to 600 starting in 2026, as part of their strategy to optimize operations and reduce labor costs. The company’s community policy also includes a salary freeze, with planned raises deferred into a fund supporting flexible working time models. This comprehensive approach aims to not only make Volkswagen competitive but future-proof by 2029, while funding for vocational training will continue, albeit at a lower scale.
