Volkswagen has reached a major milestone in its cost-cutting program: according to company management, 20,000 employees have already agreed to leave the company early. Roughly two-thirds of them are retiring.
The program, negotiated with labor unions at the end of last year, aims to reduce 35,000 jobs at the company’s German plants by 2030. Employees who agree to resign receive severance packages — depending on their years of service, these can reach up to €400,000.
In addition to layoffs, VW plans to cut the number of trainee positions: starting in 2026, the annual intake will drop from 1,400 to just 600. These measures are expected to save the company up to €1.5 billion a year in labor costs.
Approximately 130,000 employees have also agreed to a salary freeze. Instead of a raise, five percent of wages will go into a special fund to support initiatives such as flexible work schedules. Additionally, enhanced vacation bonuses are being eliminated.
According to the IG Metall union, these steps have so far helped prevent the closure of any factories.
