Volkswagen Seeks 12,000 More Job Cuts Via Transfer Companies, IG Metall Objects
Published:
In brief
Volkswagen's core brand wants to move 12,000 additional employees into state-subsidised "transfer companies" by 2030, on top of more than 35,000 jobs already being cut under a 2024 agreement. The IG Metall union and the VW works council say the plan breaches that agreement and shifts restructuring costs onto taxpayers.
Volkswagen's management has asked labour representatives to negotiate transferring up to 12,000 employees at the core VW brand into publicly subsidised "Transfergesellschaften" (transfer companies) by 2030, according to Handelsblatt and t-online, which both cite the automaker and union sources. The proposal comes on top of a reduction of more than 35,000 jobs already agreed in December 2024 and currently being carried out through early retirement and severance packages.
The plan was raised during talks between VW management and IG Metall, according to Handelsblatt. VW Personnel Board member Arne Meiswinkel justified the move by pointing to the company's deteriorating business situation, stating: "We have no time to lose. Since the future wage agreement in 2024, the economic situation has deteriorated dramatically," as quoted by t-online.
What Transfer Companies Would Mean
A Transfergesellschaft is a separate, time-limited entity that employees can move into after leaving their original employer, typically to receive retraining and job-placement support while drawing a reduced wage, partly financed through Germany's Federal Employment Agency via transfer short-time work allowances. According to Handelsblatt, VW says any transfer would be voluntary and that both production staff and administrative or development employees could be affected, with the exact number of people involved still open.
Union and Works Council Reaction
IG Metall and the VW works council rejected the proposal. In a statement published on its website on October 23, 2026, IG Metall said VW's board wants a "restructuring at taxpayers' expense" and called the push for a publicly funded transfer company a breach of the 2024 collective agreement. Works Council Chair Daniela Cavallo said, according to the union: "The workforce paid dearly for job security. The board wants to undermine it via the back door through a transfer company — at taxpayers' expense."
Before taxpayers step in, shareholders are obligated to act. It must not be that the public pays while shareholders keep collecting dividends.
— Thorsten Gröger, IG Metall regional negotiator (Handelsblatt)
IG Metall argues that employees have already forgone roughly €1.5 billion a year in pay since early 2025 in exchange for employment protection guaranteed through 2030 under the 2024 agreement, and that the transfer-company proposal would undercut that commitment. t-online reported that Gröger separately warned the dispute could become "bigger than anything this company has ever experienced," while Handelsblatt described IG Metall's objection as a "tarifpolitischer Wortbruch," or breach of collective-bargaining trust.
Background: Prior Job Cuts and Terminated Agreements
VW's core brand is already reducing headcount by more than 35,000 positions under the December 2024 agreement, using measures described by sources as "socially compatible," such as early retirement and voluntary severance. According to t-online, VW has also terminated ten collective agreements covering roughly 130,000 German employees, affecting rules on working hours, vacation and pay supplements, as part of the broader cost-cutting push.
What Happens Next
Formal wage negotiations between VW and IG Metall are scheduled to begin on November 24, 2026, in Emden, with a further session planned for December 15 in Zwickau, according to t-online and Handelsblatt. The current labour peace obligation runs through December 31, 2026; both outlets report that strikes or other labour action become possible after that date if no agreement is reached. The exact number of employees who would ultimately move into a transfer company, and the financial terms of any such arrangement, remain subject to negotiation.
VW Job-Cut Figures Cited By Sources
Figure
Detail
Source
35,000+
Jobs being cut under the December 2024 agreement via early retirement/severance
Handelsblatt, t-online
12,000
Additional jobs management wants moved into transfer companies by 2030
Handelsblatt, t-online, IG Metall
130,000
German employees affected by VW's termination of ten collective agreements
t-online
€1.5 billion/year
Pay concessions by employees since early 2025 in exchange for job security to 2030
IG Metall
Questions
How many jobs does Volkswagen want to cut now?
VW's core brand wants to move 12,000 additional employees into state-subsidised transfer companies by 2030, on top of more than 35,000 jobs already being cut under a December 2024 agreement, according to Handelsblatt and t-online.
What is a Transfergesellschaft (transfer company)?
It is a separate, time-limited entity employees can move into after leaving their employer, offering retraining and job-placement help while drawing a reduced wage, partly funded by Germany's Federal Employment Agency through transfer short-time work allowances.
Why is IG Metall opposed to the plan?
IG Metall says the proposal breaches the 2024 collective agreement, under which employees gave up about €1.5 billion a year in pay in exchange for job security through 2030, and argues it would shift restructuring costs onto taxpayers rather than shareholders.
When will VW and IG Metall negotiate this?
Formal wage talks are scheduled to start November 24, 2026, in Emden, with a further session on December 15 in Zwickau; the current labour peace obligation runs through December 31, 2026.
Would the job transfers be mandatory?
According to Handelsblatt, VW says any move into a transfer company would be voluntary, and the exact number of employees who would ultimately be affected remains open and subject to negotiation.
How the world is telling it
GermanGerman outlets including Handelsblatt and t-online frame the story around a sharpening labour conflict, emphasizing union accusations that VW management is breaking the 2024 collective agreement and shifting costs to the state, alongside direct quotes from works council chair Daniela Cavallo and IG Metall negotiator Thorsten Gröger warning of escalation once the labour peace obligation expires at the end of 2026.
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