Volkswagen Slashes Jobs by 35,000 by 2030: What You Need to Know
Many Volkswagen employees opt for part-time absences from work
Want to know what's happening with Volkswagen's workforce? Here, we'll break down the company's restructuring efforts, severance packages, and the impact on employees.
Volkswagen's Job-Cutting Spree
Volkswagen's ongoing cost-cutting and restructuring plan aims to tackle high production costs, demand imbalances, and stiff competition, particularly from Chinese electric vehicle manufacturers. The automaker expects up to 35,000 job reductions in Germany by the end of 2030.
As of June 2025, the company has already secured the elimination of approximately 20,000 jobs, with around 130,000 jobs set to be ultimately cut, meaning more than a quarter of the workforce will be affected.
Generous Severance Packages
To encourage employees to leave voluntarily, Volkswagen offers a hefty severance package, which could reach up to $400,000 based on tenure. The company takes a socially responsible approach, supporting early retirements, voluntary departures, and even termination agreements to achieve a "socially acceptable" transition.
Progress Toward Goals
The first measures of the "Future Volkswagen" agreement are underway, and the company is confident of meeting its job-reduction target. Around 20,000 employees have already agreed to leave as part of these initiatives.
Broader Context
Volkswagen's financial struggles stem from excessive capital investment, unsatisfying returns on electric vehicles, and a necessity to lower its break-even point for long-term sustainability. Streamlining manufacturing and focusing on electric mobility will help the company improve profitability while maintaining market share against global rivals.
This restructuring is expected to result in savings of nearly €1.5 billion annually.
Stay tuned for updates as Volkswagen continues its transformation journey!
- As Volkswagen streamlines manufacturing and focuses on electric mobility, it could benefit from vocational training programs in the industry, providing employees with the skills needed for emerging roles within the company's restructured business model.
- In light of Volkswagen's restructuring efforts, the company's community policy, including generous severance packages, might play a significant role in maintaining a positive relationship with the labor community, helping to secure financing for continued growth and success in the competitive automotive market.
