Volkswagen has crossed a significant threshold in its restructuring process in Germany. As part of the program carried out nationwide, mutual agreements were reached with 20 thousand employees. The separations were made through early retirement and severance packages.

Volkswagen will part ways with exactly 20 thousand employees

In the latest company meeting held at Volkswagen’s headquarters in Wolfsburg, Human Resources Director Gunnar Kilian announced that separation agreements were signed with 20 thousand employees. With this development, the company completed its first-stage goal.

It seems that the transformation is not limited to the workforce. There will also be significant changes in the company’s production activities in Germany. Production capacity is being reshaped in line with the decreasing demand on a global scale.

The Emden factory will continue to produce the ID.4 and ID.7. The production of the ID.3 model produced in the Dresden factory will end. It is planned to transform this facility into a structure that provides services to third parties.

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In parallel with the staff reduction, Volkswagen is also making significant cuts in the recruitment of interns. Starting in 2026, the company will accept only 600 interns each year instead of 1,400. This step is also part of a plan to balance labor costs in the long term.

The senior management level is also affected by the transformation process. The company’s board members will be cut by 11% in their salaries and annual bonuses in 2025 and 2026. This rate will continue gradually, decreasing to 8.5% in 2027, 6.5% in 2028, and 5.5% in 2029.

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