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Volkswagen and IG Metall Reach Agreement to Cut 35,000 Jobs, Avoid Factory Closures; No Forced Layoffs

Dec 20, 2024, 09:40 AM

Volkswagen and the IG Metall union have reached an agreement to restructure the automaker's operations in Germany, avoiding planned factory closures and mass layoffs. The deal, reached after extensive negotiations lasting over 50 hours, will see Volkswagen cut more than 35,000 jobs but will not involve any forced layoffs. Instead, workers will forgo pay raises for the next six years. This agreement aims to provide job security and stability for the workforce while addressing the company's need for significant cost reductions. The negotiations were characterized by intense discussions as both sides sought to finalize a deal before Christmas, reflecting the urgency of the situation. The agreement is expected to reshape Volkswagen's operational capacity, with reductions at several sites but without shutting down any facilities.