The potential closure of two or three Volkswagen factories in Germany could lead to significant job losses, with an estimated 15,000 employees possibly being affected. This move is part of Volkswagen’s cost-cutting efforts, aiming to reduce expenses by €10 billion and improve the company’s profit margin.
The closures are expected to result in a production decrease of at least 500,000 units, with a maximum potential loss of 750,000 units. The plan to shut down the plants is estimated to cost about €4 billion. Workers’ unions may face challenges in preventing these closures and job cuts, and may focus on negotiating for wages and compensation instead.
The company’s management is determined to reduce redundancies and streamline the workforce, indicating a shift towards leaner operations.
