Volkswagen to slash 35,000 jobs by 2030 after 'intensive negotiations' and furious protests

In a bid to cut labour costs by €1.5billion (£1.25billion), Volkswagen will cut 35,000 jobs across the brand's German sites by 2030 as part of a "socially responsible reduction in the workforce".

The manufacturing giant will also reduce the capacity of 734,000 units across its German plants as well as "structural production methods".

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Volkswagen clarified that it does not expect any significant impact on the outlook for the 2024 financial year. The original announcement, in which it warned that three factories could be closed, was met with massive protests from Germany's biggest union - IG Metall.

Commenting on the new decision, Oliver Blume, CEO of the Volkswagen Group, said: "Following the long and intensive negotiations, the agreement is an important signal for the future viability of the Volkswagen brand, Volkswagen Commercial Vehicles and the component plants.

"With the package of measures that has been agreed, the company has set a decisive course for its future in terms of costs, capacities and structures. We are now back in a position to successfully shape our own destiny.

"The Board of Management and the wider management team are making a greater than proportional financial contribution."

Volkswagen also announced a number of changes to the future of its factories around Germany.

Wolfsburg (Production)

• The Volkswagen ID.3 and Cupra Born models will be manufactured here
• Production of the Volkswagen Golf and Golf Estate will be relocated to Puebla, Mexico, from 2027. The same production will be on two assembly lines, not four
• The future of the plans is guaranteed until the end of the decade with the introduction of the electric Golf and another model

Wolfsburg (Technical Development)

• "Technical Development" will be reorganised to make it more effective through "sustainable strengthening"
• 4,000 jobs will be cut by the end of the decade, with tasks transferred to other locations
• The Technical Development department of the Volkswagen Passenger Cars brand will be responsible for the core brand group's development network

Emden

• The plant will continue to produce the ID.7 saloon, ID.7 Tourer and the ID.4, even after the facelift

Osnabrück

• The T-Roc Cabrio will be manufactured in Osnabrück until mid-2027. Options for a different use of the site are currently being explored

Zwickau

• Will remain the production location for the Audi Q4 e-tron and Audi Q4 e-tron Sportback and will focus on a single line from 2027

Dresden

• Vehicle production at the 'Transparent Factory' in Dresden will be discontinued at the end of 2025 with alternative options being assessed
• This could include the possibility of Volkswagen AG participating in a third-party scheme

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The brand also announced that it would be reviewing factory costs at sites in Kassel, Braunschweig, Salzgitter, Hannover, Wolfsburg and Chemnitz.

Thomas Schäfer, CEO of the Volkswagen Passenger Cars brand, added: "We have set ourselves three priorities for the future of the Volkswagen brand: Reduce overcapacity in Germany, reduce labour costs and achieve competitive development costs.

"The negotiations have led to viable results in all three areas. With the agreed package of measures, we are in a position to largely close the gap in our performance programme.

"We have thus created the basis for making Volkswagen the technologically leading volume manufacturer by 2030 - with a clear plan, strong products and a clear commitment to Germany as a business location."