Volkswagen, German automotive giant has announced plans to close at least three of its manufacturing plants in Germany, impacting tens of thousands of jobs across the country. Daniela Cavallo, head of the company’s works council, delivered the somber news during an employee event in Wolfsburg, Volkswagen’s headquarters, on Monday.
Cavallo confirmed that all Volkswagen plants in Germany would be affected by these plans, with the remaining facilities also expected to face reductions in their workforce. This sweeping announcement has raised concerns among employees and industry analysts alike, as the company wrestling with swelling costs and a changing market landscape.
According to Cavallo, while the details regarding which specific plants will close have not yet been released, the decision reflects a broader strategy to enhance efficiency and competitiveness in an increasingly challenging economic environment. The German Press Agency reported that no additional information was provided at the event, leaving many employees anxious about their futures.
Volkswagen operates ten main brand plants in Germany, employing approximately 120,000 workers. The potential layoffs come on the heels of the company’s earlier announcement in September, where it indicated that plant closures and mass layoffs could no longer be ruled out. This shift in strategy highlights the pressures the automotive industry is facing due to rising production costs, changing consumer demands, and the shift towards electric vehicles.
