Volkswagen has reached agreements for nearly 20,000 employees to voluntarily exit the company by 2030, representing a major step in its comprehensive restructuring of operations in Germany.
The move aims to cut operational and labor expenses by approximately £1.2 billion per year, as reported by the German newspaper Bild. Volkswagen has previously revealed plans to reduce its workforce by over 35,000 positions across Germany by 2030.
A recent works council meeting at Volkswagen’s Wolfsburg headquarters confirms that the company’s workforce reduction plan is progressing steadily. To date, 20,000 employees have opted for redundancy, with nearly two-thirds choosing partial retirement. The restructuring effort is designed to improve cost efficiency while ensuring that no factory closures are necessary.
Volkswagen’s head of human resources and board member Gunnar Kilian affirmed that the company’s transformation strategy is making steady progress and emphasized that workforce reductions are being carried out responsibly across six German sites.
Volkswagen is adjusting its German production capacity by 734,000 units to better match market demand. As part of the plan, several factories will undergo operational changes. The Emden plant will continue manufacturing the ID.4 and ID.7, while production of the T-Roc Cabriolet at Osnabrück will end by mid-2027. Additionally, Volkswagen intends to discontinue ID.3 production at its Dresden facility, with plans to repurpose the site under a third-party arrangement.
Volkswagen’s Chief Financial Officer, David Powels, admitted that the company still has a long way to go before its restructuring can be considered successful. The objective is to achieve financial stability and enhance competitiveness by 2029.
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