Volkswagen to Cut 35,000 Jobs in Germany by 2030 to Address Financial Challenges

The automaker and union leaders reach a deal to avoid plant closures while implementing cost-saving measures and job reductions.

Volkswagen will reduce its German workforce by over 35,000 jobs by 2030 through early retirements and voluntary departures, avoiding forced redundancies.
The agreement includes a job protection guarantee until 2030 and ensures no immediate plant closures, though production will end at Dresden's factory in 2025 and Osnabrück's future remains uncertain.
The company's production capacity in Germany will be reduced by 734,000 vehicles annually, with some operations, such as Golf production, shifting to Mexico.
Volkswagen aims to save €4 billion annually, including €1.5 billion from labor cost reductions, as it struggles with high costs, declining demand in Europe, and competition from Chinese automakers.
Employees agreed to a pay freeze for 2025-2026 and reduced bonuses, while the company commits to maintaining significant future investments in Germany.