Volkswagen is implementing a stringent austerity program, planning to cut up to 30,000 jobs in Germany as part of a strategy to save five billion euros. The company's management, led by CEO Oliver Blume, recognizes the need to reduce costs significantly to ensure future investments. The job cuts could impact various plants, with the Emden and Osnabrück locations being at the highest risk due to their low profitability and underutilization. Although the exact number of affected employees and plants has not been confirmed, discussions are set to begin on September 25 between management and employee representatives to outline the specifics of these plans. The company is also considering reducing its investment plan from 170 billion euros to 160 billion euros over the next five years, indicating a broader strategy to streamline operations and focus on profitability.
- The situation at Volkswagen is critical, with the automotive giant facing challenges in adapting to the changing market demands, particularly for electric vehicles. The Emden plant, which has seen significant investment for electric vehicle production, is struggling with low demand, while the Osnabrück plant, with only 2,800 employees, has been deemed unprofitable. The state of Lower Saxony, which holds a 20 percent stake in Volkswagen, may play a crucial role in the discussions, potentially influencing decisions regarding plant closures. Other locations such as Kassel and Braunschweig are also under scrutiny, as they employ thousands and could face significant layoffs. Despite the potential for job cuts, the Zwickau plant, which has transitioned to electric vehicle production, is considered vital for meeting CO₂ fleet targets and is likely to remain operational, though job reductions may still occur. The upcoming negotiations will be pivotal in determining the future of Volkswagen's workforce and operational strategy.
