Volkswagen is discussing massive job cuts at the Zwickau electric car plant

Sam Ibou September 13, 2023 2 min read

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VW’s initial considerations were already in June massive restructuring became loud in the group. In order to get the company on track for the future, an austerity course should be initiated. Now instead there is fear of job cuts.

Volkswagen

Too little demand for VW electric cars

That reports that Golem online magazine. Due to the continued low demand for VW electric cars, it appears that there is a risk of massive job cuts at the Zwickau factory.

The German press agency dpa reports that VW is in the first step of not extending employees’ current fixed-term contracts. The discussions are currently ongoing.

One in five people has a fixed-term contract

At the end of October, several hundred employees of the current 10,700 employees at the VW plant in Zwickau would be affected. Every fifth employee there only received a temporary contract and may now be unsure whether they will still be needed. A works meeting is planned for this week. “It’s a serious situation,” said Saxony’s Economics Minister Martin Dulig (SPD) in an interview with the dpa. Dulig has been in discussions with the works council and his Lower Saxony counterpart Olaf Lies (SPD) for weeks. “We want to show employees a positive perspective, but we can’t always discuss possible solutions publicly right away.”

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Volkswagen only produces electric cars in Zwickau. The plant has been extensively remodeled in recent years. VW invested another 1.2 billion euros in the plant.

Difficult topic of downsizing

Volkswagen had already let it slip a few weeks ago that the realignment of the group would not avoid job cuts. As before, according to an insider report, the group wants to forego layoffs. However, it is believed that due to “demographic change” more employees will leave the company than there will be new hires.

Summary

Volkswagen is considering massive restructuring and austerity measures
Low demand for VW electric cars leads to fears of job cuts
Fixed-term contracts of VW employees may not be extended
Hundreds of employees at the VW plant in Zwickau could be affected
Saxony’s Economics Minister Dulig in conversation with the works council and colleagues
VW invested 1.2 billion euros in converting the Zwickau factory Electric cars
VW is relying on “demographic change” to cut jobs without layoffs

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