IAV Workforce Reduction Targets 2,970 Employees by 2027

IAV Agrees New Collective Bargaining Framework With Works Council And IG Metall

On August 6, IAV GmbH, its General Works Council, and IG Metall reached a new collective bargaining agreement designed to establish a forward-looking framework for the company. Eight general works council agreements have been completed as part of the package. The agreements address the principal employment-related matters together, covering workforce arrangements, locations, working hours, compensation, and employee training. The consolidated approach is intended to provide a structured basis for managing IAV’s transformation while addressing the changing requirements of the automotive engineering sector.

IAV Plans Workforce Reduction In Germany Through 2027

The company is expanding the integration of artificial intelligence expertise across its business areas while planning a substantial workforce reduction in Germany. IAV intends to reduce its German workforce from more than 5,000 employees to 2,970 by the end of 2027. The planned reduction will be implemented through an engagement and voluntary departure program. Despite the restructuring, all of IAV’s regional offices in Germany are expected to remain in operation. The company attributes the changes to major structural shifts in the automotive industry and continuing price and efficiency pressures affecting the engineering market.

Frequently Asked Questions

What is IAV planning for its German workforce?
IAV plans to reduce its workforce in Germany from more than 5,000 employees to 2,970 by the end of 2027. The reduction is planned through an engagement and voluntary departure program rather than the closure of regional offices. The company said all of its German locations will remain in place during the restructuring. The workforce adjustment forms part of a broader response to structural changes in the automotive industry and continued pressure on prices and efficiency within the engineering market. At the same time, IAV is strengthening the integration of artificial intelligence expertise across its business areas.

What does the new agreement between IAV and employee representatives cover?
The new collective bargaining agreement between IAV GmbH, the General Works Council, and IG Metall brings several major employment topics together in one framework. Eight general works council agreements have been finalized. The package addresses employment, company locations, working hours, compensation, and training. This provides a consolidated structure for managing the company’s workforce transformation while maintaining its German regional presence. The agreement comes as IAV responds to significant structural changes across the automotive industry and ongoing price and efficiency pressures in the engineering market.