Volkswagen with massive cuts – tens of thousands could lose their jobs

Volkswagen with massive cuts – tens of thousands could lose their jobs

The company’s aim is to become more competitive, says one of the company’s managers, Daniela Cavallo.

Employees were informed at a meeting on Monday. The management plans to make cuts at all the German plants, and entire departments risk being closed down.

– All German Volkswagen plants will be affected by these plans. None of them are safe, Cavallo said.

– Almost just empty words

The trade union IG Metall reacts strongly to the message.

– We expect Volkswagen and the board to present viable plans for the future at the negotiating table, where the employer side has so far presented little other than empty phrases, says the union’s regional manager Thorsten Gröger.

The downsizing is expected to start in the middle of 2025. Approximately 120,000 are employed by the company in Germany, and ten factories are operated in the country. The factory in Osnabrück is particularly vulnerable to closure after they recently lost an agreement with Porsche.

– No rattling with the sabers

– The management is absolutely serious about all this. This is not a way to rattle the sabers in the negotiation rounds, said Cavallo, who heads the company’s working environment committee.

The savings must also be made by cutting wages by 10 per cent.

In September, Volkswagen lowered its forecast for the second time this year due to low demand for passenger cars. In the same month, the company ended a long-standing job security agreement with the unions, which had stood for over 30 years.

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