Volkswagen to Cut 35,000 Jobs in Germany as Part of Major Cost-Saving Plan

The agreement with unions includes production reductions, job security until 2030, and pay cuts for managers to avoid immediate plant closures.

Volkswagen and IG Metall reached a deal to reduce over 35,000 jobs in Germany by 2030, aiming for a socially responsible workforce reduction without forced layoffs.
The company plans to cut production capacity by 734,000 vehicles annually, equivalent to the output of two to three major plants, while avoiding immediate factory closures.
Volkswagen expects to save €15 billion annually through labor cost reductions, structural adjustments, and capacity realignments, with €1.5 billion saved each year from reduced workforce costs alone.
Approximately 4,000 managers will face salary reductions of up to 10% starting in 2025, with gradual decreases over subsequent years, as part of the broader savings plan.
The deal includes a job security guarantee until 2030, but significant changes are planned for several German sites, including potential repurposing or sale of facilities in Dresden and Osnabrück.