Volkswagen is undertaking a major workforce restructuring in Germany, aiming to reduce 35,000 jobs over the next five years while avoiding compulsory layoffs. So far, 20,000 employees have voluntarily agreed to terminate their contracts early as part of this strategy.
The company is revamping its Wolfsburg plant to focus exclusively on electric vehicle (EV) production within two years. This shift may also introduce a four-day work week at the plant. As part of cost-cutting measures agreed upon with workers’ unions in December 2024, the production of the combustion-engine Golf model is set to move from Wolfsburg to Mexico by 2027.
Volkswagen has assured workers that prioritising the electric Golf is vital for the plant’s long-term sustainability, especially as demand for the combustion engine Golf has sharply declined—from one million units in 2015 to around 300,000 in 2024, according to Reuters.
Back in December 2024, reports surfaced about potential plant closures in Germany, raising concerns for the approximately 120,000 employees across these facilities. In response, Volkswagen employees and IG Metall Union members staged a protest walkout on 2 December 2024 against the proposed job cuts.
The voluntary departures mark a significant step in Volkswagen’s effort to balance transformation with workforce stability amid industry shifts.
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