Up to 20,000 former Volkswagen employees are starting to look for new jobs

The Volkswagen Group has officially announced that it has reached an interim milestone in its large-scale staff reduction program: around 20,000 employees have already signed voluntary resignation agreements. This is part of a long-term restructuring plan aimed at cutting up to 35,000 jobs by 2030. All agreements are concluded strictly on a voluntary basis — without forced layoffs or pressure from the employer.

Most of those who agreed to leave the company are employees of pre-retirement age who will take partial or full early retirement. The rest, typically younger staff, will receive generous compensation — according to German media, payouts may reach up to 400,000 euros depending on experience, position, and other conditions.

This large-scale reduction is part of the agreements reached between Volkswagen management and the IG Metall union at the end of 2024. The main goal of the initiative is to reduce fixed costs across Volkswagen brand divisions in Germany. Company representatives emphasize that this is not about temporary measures but a long-term optimization of personnel structure and improvement of the group's financial stability amid global transformations in the automotive industry. VW’s HR Director Gunnar Kilian called the fact that 20,000 employees have already signed agreements “an important interim success” and confirmed that the process will continue until the targets are met.

Alongside staff reduction, Volkswagen is also implementing other cost-saving measures: the company has significantly cut internship programs — starting in 2026, the number of annual intern positions will drop from 1,400 to 600. In addition, pay raises for 130,000 employees of the core brand have been frozen: instead, 5% of potential salary increases will be allocated to a special compensation fund, from which employees can take extra days off or partial leave. A one-time vacation pay increase has also been canceled, and starting in 2027, a special bonus will be introduced for IG Metall union members. According to management, all these steps will allow the company to save up to 1.5 billion euros annually without forced plant closures or mass layoffs.

The IG Metall union supported the plan under the condition that there would be no forced dismissals and expressed confidence that the agreements helped avoid the worst-case scenario — shutting down production facilities in Germany. However, despite positive rhetoric, concerns remain in the industry regarding the long-term sustainability of such decisions. The current economic climate, transition to electric vehicles, global competition, and supply chain instability continue to put pressure on automakers across Europe. Nevertheless, Volkswagen emphasizes that the adopted measures are aimed specifically at adapting to these challenges and maintaining the brand’s competitiveness in the coming years.

Thus, the voluntary departure of 20,000 employees is not just an episode in the history of one automotive giant, but part of a deep transformation of the entire industry. And according to company representatives, this is only the beginning.

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