Volkswagen Seeks to Prove Toughness With Mass Layoffs After Dieselgate

Volkswagen Seeks to Prove Toughness With Mass Layoffs After Dieselgate

Berlin, October 1, 2025 — Volkswagen has reinforced its zero-tolerance policy for internal misconduct by dismissing 548 employees across several countries, the company announced on Tuesday (30).

The move comes as part of a broader effort to restore credibility after the Dieselgate scandal, which has already cost the German automaker more than €33 billion ($201 billion) in fines and compensation.


A Decade After Dieselgate

The crackdown takes place almost ten years after the 2015 revelation that Volkswagen manipulated emissions tests on 11 million vehicles worldwide. Despite leadership changes and a strong push toward electrification, the company is still dealing with the legal and cultural consequences of the scandal.

  • In May, four former executives were convicted in Germany, marking the first direct criminal liability for engineers involved.
  • Jens Hadler, Volkswagen’s former engine director, was sentenced to 4.5 years in prison, while three others received suspended or shorter sentences.
  • Court records revealed the emissions manipulation was known since 2007, proving it was an institutionalized scheme, not an isolated act.

This has reinforced the image of Volkswagen’s past authoritarian corporate structure, something the current management is determined to change.

FREE: Quickly identify and understand problems with your vehicle 🚘

CLICK HERE

Volkswagen’s New Compliance Strategy

The company is now attempting to demonstrate cultural transformation by adopting strict compliance and transparency measures. For the first time in its history, Volkswagen has made public its statistics on dismissals and employee warnings.

📊 Disciplinary Measures in 2025

MeasureNumber of Employees AffectedContext
Dismissals548Misconduct cases across countries
Warnings2,000+Mainly for unjustified absences
Pending Trials30+Former employees still facing Dieselgate charges

The publication of internal discipline data is symbolic: it sends a message to both the public and investors that Volkswagen will not tolerate any irregularities, no matter how minor.


Balancing Discipline and Cost Cuts

At the same time, the company is working to streamline operations. Volkswagen has already announced plans to cut 35,000 jobs by 2030 as part of its transition to electric vehicles (EVs) and broader cost-reduction strategy.

This dual approach — enforcing strict internal discipline while pursuing aggressive restructuring — is seen as critical to rebuilding global trust in the Volkswagen brand.


What Comes Next

More than 30 former executives and employees are still awaiting trial, including Martin Winterkorn, Volkswagen’s former CEO. Until these cases are resolved, the company continues to walk a tightrope:

  • Show the market it has learned from its past mistakes.
  • Cut costs to remain competitive in the electric era.
  • Rebuild credibility with customers, regulators, and investors.

Volkswagen’s challenge is not just technological or financial — it is deeply cultural. The company is betting that a mix of harsh internal discipline and strategic restructuring will finally close the chapter on Dieselgate.


In short: Volkswagen is sending a clear message — misconduct is out, accountability is in.