Volkswagen has escalated its enforcement of workplace policies, resulting in the termination of hundreds of employees for policy violations, primarily unexcused absences classified as misconduct. Through the first half of the year (January to June 2025), VW dismissed 548 workers globally for such breaches, with absenteeism accounting for the majority of cases. Company executives anticipate additional hundreds of terminations by year-end due to ongoing issues, as unexcused absences have reportedly cost VW approximately €1 billion ($1.17 billion) annually in lost productivity. This crackdown follows internal warnings issued via VW's intranet, emphasizing that repeated unexplained absences could lead to immediate dismissal.These actions align with VW's broader efforts to address operational inefficiencies amid economic pressures, including the shift to electric vehicles (EVs), competition from Chinese manufacturers, and declining European demand. However, unlike the massive 2024–2025 restructuring involving up to 35,000 voluntary redundancies or early retirements (not firings for cause), these terminations target individual rule-breaking rather than collective cost-cutting.
VW's approach reflects a post-Dieselgate emphasis on accountability, but it has drawn scrutiny for potentially exacerbating workforce tensions. German labor laws make mass firings difficult, so these targeted dismissals contrast with the company's larger overhaul: potential closure of three German plants, 10% pay cuts, and a freeze on raises through 2026. Unions, led by works council chair Daniela Cavallo, have criticized management for "not doing its job" and threatened strikes, with over 100,000 employees walking off the job in late 2024 protests.
Employee morale remains mixed—strong labor protections (e.g., shorter workweeks, high wages) buffer impacts, but fears of broader instability persist. VW employs ~679,000 people globally, with ~120,000 in Germany; even after planned cuts, it will dwarf rivals like Toyota (384,000 employees).
If this refers to a different 2025 incident (e.g., a specific scandal), share more details for further investigation. VW's history underscores a shift from scandal-driven purges (e.g., 204 firings in 2019 for compliance breaches) to proactive policy enforcement.