Volkswagen to Cut 20,000 Jobs Through Voluntary Departures as Part of Major Restructuring
Wolfsburg, Germany – Volkswagen has confirmed that around 20,000 employees in Germany have opted for early retirement or voluntary departure as part of a broad restructuring plan aimed at reducing operational costs and adapting to shifting market dynamics.
The German automaker, Europe’s largest, is implementing a long-term strategy to reduce its workforce by 35,000 positions by 2030. The move comes amid increasing pressure from rising production costs, sluggish demand across Europe, and growing competition from Chinese manufacturers.
Speaking at the company’s headquarters in Wolfsburg, board member Gunnar Kilian emphasized that the company is “on track” with its cost-saving goals. He described the workforce reductions as “socially responsible” and highlighted that the plan has already yielded measurable savings, particularly at Volkswagen’s six major plants in Germany.
“This restructuring is accelerating our transformation,” Kilian said. “With cost improvements at our factories and agreed departures, we are making steady progress without resorting to plant closures.”
Volkswagen aims to achieve annual savings of approximately €1.2 billion through these measures. The company also plans to reduce the number of apprenticeships by 2026, part of its broader effort to streamline operations and enhance financial efficiency.
Brand CFO David Powels also addressed employees, stressing the need for the company to confront challenges such as “excessive investments, low returns on electric vehicles, and an unsustainably high breakeven point.”
In December, Volkswagen’s management reached an agreement with labor unions to lower its production capacity in Germany by over 700,000 units annually. This deal includes workforce reductions and strategic adjustments across not only the Volkswagen core brand but also its subsidiaries, Audi and Porsche, which are undergoing similar cost-cutting initiatives.
The group’s restructuring reflects a proactive approach to economic headwinds and technological transitions, particularly as the industry moves further into the electric vehicle era.
