VW's Transformation: A Race to Save 35,000 Jobs by 2030
Part-time absences taken by thousands of Volkswagen workers
In a bold move to regain competitiveness, Volkswagen is slicing thousands of positions from its German workforce. With around 20,000 employees already climbing aboard the severance or early retirement express, the automaker marches confidently toward its goal of slashing 35,000 jobs by 2030.
The VW group has escalated its restructuring efforts, offering early retirement, age regulations, and severance agreements to employees. Those selecting the early retirement route or age regulations won't receive extra severance pay. According to Bild newspaper, approximately two-thirds of workers are opting for early retirement.
Severance packages pack a punch, with amounts of up to €400,000 depending on the employee's time served with the automaker. The next wave of job cuts targets the large birth cohorts of 1969 and 1970. The mitigation of factory costs in Wolfsburg and social agreements for job reductions at the six German VW sites accelerate the restructuring process.
Close to the new year, VW and labor representatives signed off on a comprehensive savings program for the core VW brand, putting an end (temporarily) to plant closures and job cuts threats in Germany.
"We're making progress," said personnel director Gunnar Kilian; "the 'Future Volkswagen' agreement is in full swing, and we're on target." The first cost-cutting measures have materialized, and VW is speeding up its transformation. However, the final savings objectives remain elusive. The goal: to make VW competitive and future-proof by 2029.
Sources: ntv.de, chl/dpa.
- Volkswagen
- Savings Program
- Job Cuts
Enrichment:
Volkswagen's restructuring program, unveiled in late 2023 and detailed in mid-2025, involves drastic measures to be realized by 2030. The program encompasses the following aspects:
- Job Reductions: Up to 35,000 jobs may be eliminated from VW's German workforce, with around 20,000 employees already agreeing to voluntary departures.
- Voluntary Exits: The focus lies on socially responsible job cuts, with the majority choosing early retirement. This strategy is part of a larger plan to lower production capacity by 700,000 units.
- Severance Packages: Employees are offered generous severance pay, up to €400,000 dependent on tenure and service length, as part of a socially acceptable transition strategy.
- No Forced Layoffs: The program emphasizes voluntary departures, ensuring no forced layoffs for those staying with the company.
- Financial Goals: VW expects to save approximately €1.5 billion annually through workforce reductions and additional cost-cutting measures.
- Operational Efficiency: The company aims to improve operational efficiency and profitability while transitioning to electric mobility and defending market position against global competitors.
- Apprenticeship Reduction: Starting in 2026, VW's apprenticeships will be reduced from 1,400 to 600, contributing to operational cost savings.
- Salary Freeze and Flexible Work Arrangements: Employees have agreed to a salary freeze, and planned raises will be diverted into a fund supporting flexible work time models.
- To address the striking job reductions within the Volkswagen company, a comprehensive savings program has been enacted to achieve a target of 35,000 job cuts by 2030, aiming for a more efficient workforce.
- As part of this program, the company is providing vocational training and financial support to employees impacted by job reductions, as a preemptive measure to transition them into other sectors of the industry or establish their own businesses.
