Volkswagen, Europe’s largest carmaker, has announced a sweeping restructuring plan for its German operations, including more than 35,000 job cuts and capacity reductions. The deal, reached in a last-minute negotiation with unions, aims to avert mass strikes while positioning the company for a competitive future in the rapidly evolving auto industry.

German Chancellor Olaf Scholz hailed the agreement as a balanced and socially responsible resolution.
“It’s good news that the company and trade unions have agreed on a good, socially acceptable solution today,” Scholz said. “Despite all the hardships, it ensures that Volkswagen and its employees can look forward to a good future. This agreement reaffirms Germany’s standing as an important location for industry and the automotive sector.”

Porsche SE, Volkswagen’s top shareholder, also welcomed the move, emphasising the structural advantages it brings.
“The agreed catalogue of measures makes a substantial contribution to a structural and sustainable reduction in costs,” the company said in a statement. “The result will lead to a considerable improvement in Volkswagen’s competitiveness, laying a solid foundation for future investments.”

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