Overview

• Volkswagen has contractually fixed 20,000 voluntary departures toward its goal of cutting 35,000 German jobs by 2030.
• The majority of departing employees will move into early retirement or part-time arrangements with tenure-based severance packages of up to €400,000.
• Additional cost-cutting steps include halving annual apprenticeship slots from 1,400 to 600, suspending pay raises and replacing the €1,290 holiday bonus with a special fund contribution.
• The Wolfsburg plant is being retooled for electric vehicle production, and works council leaders warn of possible four-day workweeks from 2027 during a temporary output dip.
• Volkswagen’s electric vehicle strategy faces pressure from high investment costs, weak consumer demand and fierce competition from Chinese automakers, challenging margin and break-even targets.