The plan provides for the closure of at least three factories in Germany. Employees can also reduce their salary by approximately 18%.
Volkswagen has announced drastic cost-cutting measures, including closing at least three factories in Germany, cutting workers’ wages and outsourcing some departments abroad. Bild reported this on Monday, October 28.
The works council is concerned about mass layoffs, which could negatively affect the region’s economy.
Volkswagen’s board of directors announced the implementation of a large-scale cost-cutting plan. This accounts for the closure of at least three out of ten factories located in Germany. The company also plans to significantly reduce production at its remaining plants and cut worker salaries by about 18%. Some departments will be outsourced to other countries, which, according to company representatives, will help optimize costs.
According to the head of the work council, Daniela Cavallo, the new reduction plan has caused serious concern among the workers. He said that the workers have been informed about possible layoffs, as well as about future financial difficulties, because for many special allowances will be canceled. The union insists on raising wages by 7%, but it is likely to be difficult to agree on this with management.
The concern also plans to close the plant in Osnabrück, which recently lost a large order from Porsche.
VW plants in Germany employ about 120 thousand people, almost half of them at the main plant in Wolfsburg.
Let’s recall that it was previously reported that Volkswagen, for the first time in its 87 years of existence, announced its intention to close factories in Germany.
As already reported, Germany’s budget deficit in 2025 may lead to a reduction in military aid to Ukraine – up to 4 billion in 2025.
Germany has agreed to halve aid to Ukraine by 2025
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.