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.