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Volkswagen Secures 20,000 Voluntary Exits Toward 35,000 Job Cuts in Germany

Union support has enabled 20,000 early departures under terms that rule out plant closures.

The departures occur as Volkswagen is restructuring its German operations to cope with uneven demand for its vehicles
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Overview

  • Around 20,000 employees have agreed to voluntary early retirements or departures, representing nearly two-thirds of the 35,000 roles Volkswagen plans to cut in Germany by 2030.
  • The restructuring target is designed to deliver approximately €1.5 billion in annual savings through reduced labour costs.
  • A severance fund of €900 million has been set aside to offer departing staff payouts that could reach $400,000 depending on tenure.
  • Volkswagen will shrink annual apprenticeship intakes from 1,400 to 600 starting in 2026 and freeze wages for roughly 130,000 workers.
  • Executives cite rising production costs, softer European demand and mounting Chinese competition as drivers of the cost-cutting overhaul.