VW Didn’t Terminate Their Employment, Yet Tens Of Thousands of Workers Are Still Leaving | Carscoops

      The head of human resources at the company stated that the car manufacturer is moving in a positive direction.

      June 4, 2025, at 05:10

      by Brad Anderson

      The extensive job reductions are being implemented through early retirement and severance packages.

      Volkswagen aims to decrease its German production capacity by 734,000 units to better align with demand.

      In addition, board members will see their salaries and annual bonuses reduced in the coming years.

      Six months ago, Volkswagen announced plans to eliminate more than 35,000 jobs across Germany by 2030. Although this seemed like a bold initiative at the time, it has since come to light that 20,000 employees have already agreed to leave the company voluntarily. Many employees appear to be keen on departing, possibly out of concern that they might find themselves on a sinking ship if they stay.

      Read: VW Confirms More Than 35,000 Job Cuts In Germany, Golf Production Moving To Mexico

      During a recent company meeting at VW’s headquarters in Wolfsburg, chief human resources officer Gunnar Kilian confirmed that approximately 20,000 departures have been “contractually agreed.” It is important to note that these employees are not being laid off; instead, the job reductions are being executed through early retirement and severance packages.

      “The initial measures of the ‘Future Volkswagen’ agreement are being realized, and we are progressing as planned,” Kilian stated, according to Handelsblatt. “With tangible advancements in factory costs in Wolfsburg and socially responsible job reductions at Volkswagen AG's six German locations alone, we are propelling our transformation forward.”

      Production Cutbacks and Plant Realignments

      However, Volkswagen still has a significant amount of work ahead. The automaker plans to reduce its production capacity in Germany by 734,000 units to better match current demand by implementing changes at several plants. The Emden site will continue to manufacture the ID.4 and ID.7, while the Osnabruck factory will cease production of the T-Roc Cabriolet in mid-2027.

      Additionally, Volkswagen intends to stop producing the ID.3 at its Dresden facility and is likely to transition this site to some form of “third-party scheme.”

      Chief financial officer David Powels acknowledged that the company has substantial progress to make before it can consider the restructuring a success. The objective is to ensure Volkswagen is competitive and financially sustainable by 2029.

      Cost-cutting measures are not confined to the assembly line, as recent reports indicate that VW board members will experience gradual reductions in their salaries and bonuses over the next five years. Pay is expected to decrease by 11% in 2025 and 2026, followed by smaller reductions until 2029. Overall, these cuts could potentially save the company around €15 million, or approximately $16.2 million.