FX.co ★ Volkswagen And Union Agree To Job Cuts Of Over 35,000 By 2030

Volkswagen Group (VKW.L, VLKAF.PK, VOW.BE) has reached a consensus with its union to responsibly reduce its workforce by over 35,000 employees across its German operations by 2030. This decision is part of a newly devised job security strategy extending through that year, with the company foreseeing no major impact on its 2024 financial outlook.

The German automotive giant announced the completion of an agreement named 'Zukunft Volkswagen' (Future Volkswagen) after extensive discussions with IG Metall and the Works Council. This strategy aims to slash labor costs by 1.5 billion euros annually, with a wage agreement in place until 2030.

In the near term, reductions in labor expenses along with structural adjustments, such as capacity reductions and cuts in development costs, are projected to deliver cost savings of over 4 billion euros annually.

Furthermore, Volkswagen plans to decrease its production capacity by 734,000 units across its German facilities, laying the groundwork for substantial investments in future products up to 2030.

This operational and structural reorganization is intended to support Volkswagen Passenger Cars in reaching its medium-term goals for return on sales.

The company has announced that from 2027, production of the Golf and Golf Estate will shift to Puebla, Mexico, reducing the number of assembly lines from four to two.

Future responsibilities for the core brand group's development network will fall under the Technical Development department of the Volkswagen Passenger Cars brand. The Emden plant will continue to manufacture the ID.7 saloon, ID.7 Tourer, and ID.4, even following their facelifts.

The T-Roc Cabrio will be produced in Osnabrück until mid-2027, with alternative site uses currently under consideration.

The Zwickau facility will maintain production of the Audi Q4 e-tron and Audi Q4 e-tron Sportback, concentrating vehicle production on a single line starting in 2027.

Vehicle assembly at the 'Transparent Factory' in Dresden will cease by the end of 2025, with Volkswagen exploring alternative options, including potential participation in a third-party venture.

The Hannover plant will continue its role as the production site for the ID.Buzz and Multivan models.