Volkswagen: By 2030 - 35,000 job cuts without layoffs!

Volkswagen: By 2030 - 35,000 job cuts without layoffs!

A massive change is imminent at Volkswagen: The company plans to cut a total of 35,000 jobs at its German locations by 2030. This corresponds to almost one in four of the current 130,000 jobs and represents a fundamental change in the company structure. However, the job cuts will not take place through redundancies for operational reasons, but rather through contractual agreements. According to information from Mercury Over 25,000 employees have already agreed to give up their jobs.

VW is relying on waiving wage increases, bonuses and the use of partial retirement and termination agreements. These measures aim to reduce labor costs by around 1.5 billion euros. VW's human resources manager, Arne Meiswinkel, emphasized that around three quarters of those affected are going into partial retirement, while further departures are being handled through regular retirements and termination agreements. The severance payments vary: after ten years of service, the severance payment is around 47,000 euros, after two decades it is around 100,000 euros.

Concrete numbers and regulations

The dismantling is also accompanied by generous framework conditions. Employment security was renewed until 2030, and employees in partial retirement receive between 78 and 95 percent of their previous net salary. VW also covers employer contributions to pension and retirement provision and compensates for half of pension gaps. So far, almost 2,000 termination agreements have already found their way to those affected. These relief measures are intended to make the transition for the laid-off employees as smooth as possible.

Speaking of layoffs: In the last few months, VW has cut more than 11,000 jobs at ten locations. This was done as part of ongoing efforts to reduce personnel costs. Many administrative positions will be lost as duplicate structures are eliminated. Operating costs have been reduced by 30 percent in the Wolfsburg, Zwickau and Emden plants. These savings are absolutely necessary because the VW Passenger Cars brand achieved an operating profit margin of just 4 percent in the first nine months, while the medium-term target is 6.5 percent RND reported.

Future outlook and production relocation

A central issue on the agenda is the relocation of Golf production to Mexico, where production is scheduled to start in 2027. This decision will be closely watched as delays in the development of a new platform, the Scalable Systems Platform (SSP), could affect plans. The electric VW Golf, originally planned for 2029, is not expected to go into production until 2030.

Another highlight of the discussions is the idea of ​​a four-day week for the Wolfsburg plant. This measure is being considered to avoid mass layoffs, similar to what happened in the 1990s. The pressure on the “Future” agreement is growing, and VW is looking for additional savings opportunities as part of an earnings improvement program. Despite these challenges, VW was able to record a profit of almost 2.2 billion euros in the first quarter of 2025.

In a period characterized by both innovative initiatives and massive cuts, it is clear that Volkswagen is facing a decisive turning point. The coming period will show whether the measures are actually sufficient to make the company sustainable.

The developments surrounding the job cuts at VW are of great importance not only for the employees, but also for the entire industry. The strategy that Volkswagen is introducing with “Volkswagen Boost 2030” aims to be able to appear on the market as a technologically leading volume manufacturer by 2030.

For everyone affected and interested, it remains exciting to see how the situation will develop and whether VW can master the challenges.

You can find more background information and current developments at: NDR.