Massive amounts of layoffs in Germany as Volkswagen announces unprecedented closures of at least three of its factories.
Tens of thousands of workers will be laid off, and the remaining staff will be forced to take a ten percent pay cut as the German car manufacturer’s bet on electric vehicles fails to pay off.
As well as closing three plants, the company intends to downsize the remaining factories, leading to the outsourcing of many more jobs. According to a document published on Monday, October 28 by the work’s council of the company, ‘This is the plan of the largest industrial group in Germany to start selling off its country of origin. All German VW plants are affected by this. None of them are safe.’
Volkswagen’s haphazard transition to electric vehicles
The announcement comes after Volkswagen recently issued its second profit warning in less than three months. A weakness of demand in the Chinese and European markets, along with a haphazard transition over to electric vehicles, have affected the manufacturer’s profit predictions. As well as a 10 percent cut in wages, there will be a two-year salary freeze between 2025 and 2026.
The factory closures will be the first factory shutdowns on home turf in 87 years of the company’s history. Volkswagen currently has 10 plants and over 300,0o0 employees in Germany and has been hinting at possible closures since the beginning of the year, blaming cheaper Chinese electric vehicles on the market and a general slowdown in the economy.
