Volkswagen factory closures signal major job cuts in Germany
The Volkswagen Group has announced the closure of at least three factories in Germany, resulting in the layoff of tens of thousands of employees. The head of the works council, Daniela Cavallo, communicated this on Monday.
Cavallo disclosed that the job cuts will affect all Volkswagen plants in Germany, which employs approximately 120,000 people. Half of these workers are based in Wolfsburg, Lower Saxony.
No factory is safe – she emphasised, as reported by the Polish Press Agency.
The production plant in Osnabrück, Lower Saxony, which recently lost an order from Porsche, is particularly at risk. Volkswagen has ten factories in Germany: six in Lower Saxony, three in Saxony, and one in Hesse, according to the Tagesschau portal.
According to Cavallo, the management also plans obligatory layoffs, with some departments of the factories to be closed or relocated abroad. Employees had previously been informed about these plans.
Representatives of the company and the IG Metall union, which represents Volkswagen employees, are scheduled to meet on Wednesday for another round of negotiations. The company is demanding wage cuts and a freeze on raises for the next two years, while the union is advocating for salary increases.
Volkswagen lays off, the German government appeals
In September, Volkswagen cancelled a job security programme that had been in place for over 30 years. This decision allows for compulsory layoffs to begin from mid-2025. The German government has urged the group to safeguard jobs.
A government spokesperson conveyed that, for Chancellor Olaf Scholz, it is vital that "possible past managerial errors do not harm the employees." It was emphasised that the goal remains the preservation and safeguarding of jobs.
