Mass Layoffs at Volkswagen Automotive Company

The German Volkswagen automotive company has reached a critical juncture in its cost-cutting program. According to the board of directors, 20,000 employees have already agreed to leave their jobs early. Of these, about two-thirds are retiring, reports Bild.

The program was agreed upon with trade unions at the end of last year and foresees the reduction of 35,000 jobs in the company's German factories by 2030. Employees who agree to leave early will receive compensation, which could reach up to €400,000 depending on their years of service.

In addition to these layoffs, VW plans to reduce the number of internship positions offered. Starting in 2026, only 600 positions will be available annually, down from 1,400. The company's calculations indicate that these measures will save up to €1.5 billion annually, which was previously spent on salaries.

Furthermore, about 130,000 employees have agreed to a wage freeze. Instead of receiving raises, five percent will be redirected to a special fund that will finance, for example, flexible work schedules. Additionally, the payment of a supplementary holiday allowance has been canceled.

IG Metall, the trade union, insists that these actions have so far allowed the company to avoid factory closures.