21. Sep 2026
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(AWP Alliance News) - German carmaker Volkswagen AG intends to step up the pace of its core VW brand's ongoing cost-cutting programme, Chief Executive Officer of Volkswagen Passenger Cars Thomas Schafer said at a staff meeting in Wolfsburg on Monday.
"We have absolutely no time to lose and will therefore significantly ramp up our performance programme once again," said Schafer, as employees in the German car industry held protests nationwide to call on management to secure jobs.
The Volkswagen Group, Europe's largest carmaker, has warned that a further 50,000 jobs could be cut worldwide, around half of which would hit Germany.
At the core VW brand, an agreement was reached at the end of 2024 to reduce overcapacity at German sites, lower labour costs and bring development costs down to a competitive level.
Schafer said around 16,300 redundancies have been finalised in Germany, with a total of just under 28,800 agreed upon by 2030, close to the target of 35,000. He called the developments "good progress," but warned that the measures are insufficient.
Daniela Cavallo, the chair of the Volkswagen works council, expects the cost-cutting efforts to become even more severe.
"At the workplace level, the company's cost-cutting frenzy will hit us from all sides in the coming weeks. Even more so than is already the case, I fear," said Cavallo, according to reports from participants at the works council meeting.
A storm is gathering, she said. "And it won't be a minor one."
She questioned whether the group's planned large-scale job cuts can still be implemented in a socially responsible manner.
This would not be achieved through partial retirement schemes and voluntary redundancy agreements alone, she said, warning against redundancies.
An employment protection scheme at VW is reportedly valid until the end of 2030. It is said to be non-terminable.
VW shares closed 1.1% lower at EUR75.30 each in Frankfurt on Monday.
source: dpa
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