Volkswagen to Cut 35,000 German Jobs by 2030
Volkswagen plans to cut 35,000 jobs in Germany by 2030 as part of a major cost-reduction strategy. The company is also targeting a 20% reduction in costs by 2028 to navigate competitive, regulatory, and technological pressures facing legacy German manufacturers.
- This cost-reduction effort is part of a broader performance program for the VW brand called "Accelerate Forward / Road to 6.5," which aims to achieve a sustainable 6.5% return on sales and improve earnings by approximately €10 billion by 2026. - The job cuts will be implemented through "socially responsible" measures such as partial or early retirement agreements, leveraging the "demographic curve" as employees from the baby boomer generation retire. Volkswagen has an agreement with its labor union that rules out operational layoffs before 2029. - A significant portion of the savings will target administrative personnel costs, with a planned reduction of 20% in this area. - Beyond personnel, VW is also streamlining operations by reducing vehicle development times from 50 to 36 months, decreasing the number of test vehicles by up to 50%, and discontinuing lower-volume models like the Arteon. - The restructuring impacts manufacturing, with the Transparent Factory in Dresden ceasing vehicle production by the end of 2025 and production of the VW Golf set to move to Mexico. - This extensive restructuring is a response to multiple pressures, including a sales slump and loss of market share in China, the costs of transitioning to electric vehicles, and increased competition from Chinese EV manufacturers like BYD and Geely. - In January 2026, CEO Oliver Blume and CFO Arno Antlitz presented a "massive" new savings plan to top executives, aiming for a 20% cost reduction across all brands by 2028, a target that could amount to €60 billion. - While the powerful works council has emphasized existing agreements that rule out plant closures for operational reasons, insiders cited after the January 2026 executive meeting suggest that plant closures could still be considered to meet the ambitious new targets.
