Volkswagen to shutter factories, cut thousands of German jobs
The Volkswagen Group announced the closure of at least three factories in Germany and the layoff of tens of thousands of employees. This information was communicated on Monday by the head of the works council, Daniela Cavallo.
Cavallo revealed that the job cuts plans concern all Volkswagen plants in Germany, where the company employs around 120,000 people. Half of them work in Wolfsburg, Lower Saxony.
No factory is safe, she emphasized.
Particularly at risk is the production plant in Osnabrück, Lower Saxony, which recently lost an order from Porsche. Volkswagen has ten factories in Germany: six in Lower Saxony, three in Saxony, and one in Hesse, reported the tagesschau portal.
According to Cavallo, the management also plans forced layoffs, and some departments of the factories are to be closed or moved abroad. Employees were previously informed about these plans.
Representatives of the company and the IG Metall union, representing Volkswagen employees, will meet on Wednesday for another round of negotiations. The company demands wage cuts and no raises in the next two years, while the union is advocating for salary increases.
Volkswagen lays off, the German government appeals
In September, Volkswagen canceled a job security program that had been in effect for over 30 years. This decision means that compulsory layoffs will be possible from mid-2025. The German government has urged the group to save jobs.
A government spokesperson conveyed that for Chancellor Olaf Scholz, it is essential that "possible past managerial errors do not harm the employees." It was emphasized that the goal remains the preservation and safeguarding of jobs.
