Volkswagen confirms more than 35,000 job cuts in Germany, Golf

T-Roc convertible to end production in 2027 as production ends at Osnabrück plant

After strikes and heated exchanges, Volkswagen reached an agreement with the IG Metall union. However, there is little cause for celebration as thousands of workers will lose their jobs.

The agreement is called “Zukunft (Future) Volkswagen” and calls for a “socially responsible reduction of the workforce.” By 2030, more than 35,000 jobs will be eliminated in Germany.

More: 100,000 workers strike at 9 Volkswagen plants

While the cuts are steep, Volkswagen will save 150 million euros ($1.5 billion) in annual labor costs. The company’s production capacity in Germany will also be reduced by 734,000 units to better meet demand. Volkswagen expects to save more than 15 euros ($15.6 billion) per year in the medium term.

Volkswagen said the agreement “combines job security, financial stability and leading technology position in sustainable mobility.” They also noted that the savings will help “lay the basis for important investments in future products until 2030.”

Volkswagen Group CEO Oliver Blum said in a statement: “This agreement is an important signal for the future viability of the Volkswagen brand, Volkswagen Commercial Vehicles and parts plants. With the agreed package of measures, the The company has set decisive directions for its future in terms of costs, capacity and structure. We are now back in a position to successfully shape our destiny.”

In the future, Volkswagen’s Wolfsburg plant will produce the ID.3 and Cupra Born. Production of the Golf and Golf Estate will move to Mexico in 2027, but the e-Golf and SSP-based electric cars will be produced in Germany by the end of the decade.

The Emden plant will continue to produce the ID.4 and ID.7, while the Osnabrück plant will cease production of the T-Roc Cabrio in mid-2027. Its future looks questionable, but Volkswagen said it is “currently exploring options for different uses of the site.”

Zwickau will build the Audi Q4 e-tron and Q4 e-tron Sportback, while production at Volkswagen’s luxury plant in Dresden – known as the “transparent factory” – will cease at the end of next year. The company currently produces the ID.3, and Volkswagen said they are exploring options for the factory, including “third-party programs.”

In Hanover, production of the ID.Buzz and Multivan will continue. In addition, Volkswagen Group parts plants in Kassel, Braunschweig, Salzgitter, Hannover, Wolfsburg and Chemnitz will also be retained. However, these locations will have a “new working hours model.”