Volkswagen restructuring to cut 35,000 jobs in Germany by 2030

Volkswagen is undergoing a major restructuring process in Germany, aiming to reduce its workforce by more than 35,000 positions by 2030. Following extensive negotiations between the company and the IG Metall union, a restructuring package was established to avoid operational redundancies. While no specific plant is being formally closed, production capacity is expected to decrease by more than 700,000 vehicles annually.

The agreement includes measures such as partial retirement with up to 95 percent net salary coverage and severance programs. In exchange, employees will forgo wage increases and face reduced bonuses. Employment security measures are set to remain in place until the end of 2030.

The workforce reductions may also impact local real estate markets near production sites like Wolfsburg, Salzgitter, Braunschweig, and Chemnitz. While current data shows mixed trends—such as rising purchase prices for existing apartments in Wolfsburg alongside slightly falling rents—experts note that economic dependence on a major employer can pose long-term risks to housing demand and property values.