Volkswagen is undergoing a significant transformation, driven by intense competition and the shift toward electric vehicles. The company plans to lay off over 35,000 workers in Germany by 2030, citing high labor costs and the need for greater profit margins to stay competitive. This restructuring will also see a reduction in vehicle production capacity by more than 700,000 units.
Negotiations between Volkswagen and the union have resulted in agreements to avoid compulsory layoffs and plant closures, though the reduction in positions remains "painful." As part of cost-cutting measures, around 4,000 managers will face salary reductions ranging from 5% to 10% until 2030. These cuts are aimed at involving management in the financial solution, as emphasized by union representatives.
Volkswagen’s strategy includes launching nine new models by 2027, with a focus on leading the electric vehicle market in Europe. The company aims to have at least three models in the EU's top ten rankings. Production changes are planned, such as shifting the Golf production to Mexico and focusing on electric models like the ID.3 at its Wolfsburg plant.
Despite these adjustments, Volkswagen assures a socially responsible approach to the job cuts, with a commitment to employment security until 2030. The company's leadership acknowledges the emotional toll these changes have on employees, emphasizing the need for a clear future perspective. As the industry evolves, Volkswagen aims to remain a stable and reliable employer by adapting to new market demands.
