Volkswagen has reached an important milestone in its cost optimization program — according to company management, 20,000 employees have already decided to leave the company early. About two-thirds of them are retiring.
This program, agreed upon with the trade unions at the end of last year, foresees the reduction of 35,000 jobs at the company’s factories in Germany by 2030. Employees who agree to leave receive compensation, which can reach up to 400,000 euros depending on their length of service.
In addition to workforce reductions, Volkswagen plans to cut the number of apprenticeship positions: starting in 2026, the number will decrease from 1,400 to 600 per year. According to the company’s calculations, these measures will save up to 1.5 billion euros annually in labor costs.
Furthermore, around 130,000 employees have agreed to a wage freeze — instead of a planned 5% salary increase, the funds will be directed to a special fund intended to support flexible work schedules and other initiatives. Additionally, the payment of increased vacation allowances is being canceled. Representatives of the IG Metall union note that thanks to these measures, factory closures have so far been avoided.
