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Why Volkswagen Is Letting Go of Hundreds of Employees?

Volkswagen is paying a heavy price for employee absenteeism — nearly one billion euros a year, according to the German giant itself. And the company isn’t staying quiet about it.

In just the first half of 2025, Volkswagen cut ties with 548 employees across the globe for repeated, unjustified absences. Another 2,079 workers received official warnings, and insiders say the number of dismissals could climb even higher before year’s end.

CEO Thomas Schäfer had already sounded the alarm last year, warning that absenteeism was draining the company’s resources. Now Volkswagen is doubling down on its message, reminding employees through its internal network that skipping work without a valid reason could lead to immediate termination.

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Job Cuts on the Horizon

This comes as Volkswagen prepares for broader restructuring, with plans to trim as many as 35,000 jobs in Germany by 2030 as part of its cost-saving strategy.

Factories on Pause

At the same time, weak demand is forcing temporary shutdowns. Starting October 6, production at the Zwickau and Dresden plants will stop for a week, while the Osnabrück factory will close for one week this month and then stay dark at least one day per week until the end of the year.

These factories are home to the ID.4 and ID.7 electric models, while Osnabrück produces the T-Roc convertible — a car that will disappear from the lineup altogether next year.

Why Volkswagen Is Letting Go of Hundreds of Employees?

Bright Spots in Wolfsburg

But it’s not all bad news. Over at Volkswagen’s Wolfsburg headquarters, the story is very different. Strong demand for the Golf, Tiguan, and Tyron means extra shifts are being added to keep up with customer orders, proving that some classics never lose their shine.

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