Volkswagen plans additional workforce reductions and proposes transfer companies

Volkswagen communicated that it will implement additional workforce reductions beyond those previously negotiated and will seek to create transfer companies as part of the next collective bargaining round. Transfer companies are intended to act as interim stations, providing displaced employees with training and job-placement support, typically funded through social plans or works agreements and partially subsidised by the Federal Employment Agency.

The company also plans to use voluntary exit tools and further cut labour costs, continuing its reliance on early-retirement schemes and severance packages. Volkswagen stressed that the process should be socially responsible and give workers choice and assistance for their future careers. The upcoming negotiations, beginning at the end of November, will also address the broader employment-security framework that the firm aims to maintain through 2030. The IG Metall union rejected the transfer-company proposal, calling it legally unfounded and demanding that shareholders bear the cost of any support measures.