Overview

• Approximately 20,000 employees have agreed to leave under the social pact negotiated late in 2024.
• The agreement is designed to deliver €1.5 billion in annual savings through reduced labor costs and a wage freeze in 2025 and 2026.
• A 5% salary increase will be paid into a fund to support flexible work models instead of immediate pay rises.
• Volkswagen plans to eliminate a total of 35,000 German jobs by 2030 and transfer Golf production from Wolfsburg to Mexico.
• The cuts and relocations aim to strengthen competitiveness against Chinese rivals and support the electric-vehicle transition, with board member Gunnar Kilian reporting positive early results.