Volkswagen, one of the world’s largest automobile manufacturers, has long been a symbol of German engineering and innovation.
The company has produced some of the most iconic vehicles, from the Beetle to the Golf, dominating global markets for decades.
But like many traditional automakers, Volkswagen faces increasing pressure to adapt to a rapidly changing industry.
Electric vehicles, cheaper competitors, and shifting consumer preferences have created significant challenges. Now, VW is taking drastic steps to secure its future, according to Digi24.
Strikes Already Prepared
The German automaker has announced plans to eliminate more than 35,000 jobs in its home country.
This decision comes as part of a broader agreement reached with the powerful IG Metall union to avoid disruptive mass strikes.
The agreement follows months of tense negotiations, which saw over 100,000 workers participate in strikes — the largest in the company’s 87-year history.
While the job cuts are significant, they will be implemented gradually. No immediate plant closures or layoffs are planned.
According to Volkswagen’s CEO, Oliver Blume, the agreement sets a new strategic direction. "Now we are again in a position to successfully shape our own destiny," Blume stated.
Volkswagen has been struggling to compete with Chinese automakers offering more affordable vehicles. Demand for EVs in Europe has also grown slower than anticipated, compounding financial pressures.
The company hopes to save €15 billion annually through these measures.
Despite assurances that no major factories will close immediately, changes are already underway. The plant in Dresden is scheduled to cease vehicle production by the end of 2025.
Volkswagen is also exploring options for its Osnabrück facility, including selling it, with some production possibly moving to Mexico.
Union leaders have described the agreement as a hard-won compromise, calling it a "Christmas miracle" after over 70 hours of intense negotiations.
Although job reductions are a bitter pill, the union successfully resisted salary cuts and immediate closures.
