Volkswagen announced large-scale layoffs in Germany

After a series of strikes and negotiations, the auto giant announced that it had reached an agreement with the IG Metall trade union and workers. According to it, Volkswagen will lay off about 35 thousand people in Germany, but will give the rest job guarantees. Production capacity will be reduced by 734 thousand cars per year by 2030. In addition, changes are planned at factories: in particular, the relocation of Golf production to Mexico.

The staff cuts will allow financially distressed Volkswagen to cut annual costs by 1.5 billion euros. In the medium term, thanks to the decisions taken, more than 15 billion euros will be saved, management estimates. This will help VW “lay the foundation for important investments in future products.”

Glass Factory in Dresden
Volkswagen

There is no longer any talk of closing factories, at least for now. The headquarters in Wolfsburg will assemble the ID.3 and Cupra Born, and the Golf will be moved to Mexico in 2027. At the same time, the electric Golf will be assembled in Germany.

The Emden plant will continue to produce the battery-powered ID.4 and ID.7, and the Audi Q4 e-tron and Q4 e-tron Sportback will be assembled in Zwickau. The production of ID.Buzz and Multivan in Hanover, as well as component plants in Kassel, Braunschweig, Salzgitter, Hannover, Wolfsburg and Chemnitz, have been retained. True, some will switch to the new schedule.

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The future of the Osnabrück site, which will cease production of the T-Roc Cabrio in mid-2027, is unclear. Now Volkswagen is thinking about options for its further use.

The same goes for the Glass Manufactory in Dresden, built in 2002 as a Volkswagen Phaeton. It will stop producing the ID.3 at the end of next year, and the Germans have no other plans for the plant yet.

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