Volkswagen is set to close at least three factories in Germany and lay off tens of thousands of employees as part of an extensive restructuring effort, according to the head of the carmaker's works council, Daniela Cavallo.
VolksWagen plans major layoffs
This significant overhaul comes amid ongoing negotiations with unions over strategies to reduce costs and enhance competitiveness, marking the first consideration of plant closures in Germany.
Cavallo emphasized the seriousness of management's intentions, stating, "This is not sabre-rattling in the collective bargaining round. This is the plan of Germany's largest industrial group to initiate the sell-off in its home country." However, she did not disclose which plants would be impacted or the exact number of Volkswagen’s approximately 300,000 staff in Germany who could face layoffs.
Rising escalation in VW workforce
This announcement signifies a notable escalation in tensions between Volkswagen's workforce and management, which is facing mounting pressure to cut costs amid declining demand in key markets like China and Europe. Cavallo also urged the German government to develop a comprehensive strategy for the nation's industrial sector, warning that without decisive action, Germany risks significant economic decline.
