Volkswagen Job Cuts in Germany Extended to 2035

Volkswagen has secured agreements with about 20,000 German employees to voluntarily leave the company by 2030, as part of a broader plan to cut 35,000 jobs in Germany by 2035. The voluntary exits, negotiated with unions and finalized in December, primarily involve early retirement and severance packages. This restructuring aims to reduce factory costs and improve profitability in response to challenges like excessive investment, low returns on electric vehicles, and global trade pressures. The measures, which include a reduction in annual apprenticeships and a payment freeze for core workers, are projected to save around €1.5 billion annually in labor costs. Management, including CFO David Powels, emphasized that these steps have helped avoid plant closures but acknowledged that further work is needed to boost Volkswagen's competitiveness. The moves are part of the automaker's ongoing response to industry changes and economic pressures.