Volkswagen Agrees with Union to Start Job Cut Talks Next Month

Dow Jones10-24
 
 

Automaker Volkswagen said it agreed with German union IG Metall to start negotiations around job and cost cuts at the end of next month.

The company, which houses a vast stable of brands that includes VW, Audi and Porsche, said Friday that talks are scheduled to begin on Nov. 24 and continue on Dec. 15 at its facilities in Emden and Zwickau, respectively.

"Given the sharp deterioration of the economic situation, Volkswagen's objective is to reduce labor costs as quickly as possible," it said, adding that the group intends to remain competitive and ensure its long-term viability.

Under the collective bargaining agreement of 2024, the parties committed to a reduction of more than 35,000 jobs at Volkswagen's German sites by 2030. The group's plan provides for an additional reduction of 12,000 positions at Volkswagen by 2030.

Volkswagen has been working on a broad cost-cutting plan that could see job cuts double and aims for billions of euros a year in cost savings as the company faces a number of challenges including fierce Chinese competition.

The carmaker employed more than 600,000 people at the end of 2025, according to the company's website.

 
 

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