Volkswagen in crisis: layoffs and wage cuts coming soon
Volkswagen, a historic German car company, is currently in a difficult situation. According to recent union statements, the company plans a series of drastic measures that include layoffs and 10% wage cuts. This restructuring plan was presented by management to the works council and has caused strong concerns among workers
.
The measures envisaged by Volkswagen
The head of the works council, Daniela Cavallo, revealed that Volkswagen is considering reducing salaries in all sectors and freezing salaries for 2025 and 2026.
It is estimated that workers could suffer an overall wage cut of 18% in the period in question. In addition, employees with collective agreements could lose bonuses and additional payments, further aggravating the economic situation of the workforce
.
Closure of factories and downsizing
In addition to the wage cuts, Volkswagen announced the closure of three factories and the downsizing of other plants in Germany. The Osnabrueck plant is particularly at risk. Currently, the company employs around 120,000 people in Germany, and the closure of factories could have a devastating impact on the local community and
the economy.
Trade unions’ reactions and resistance
The announced measures have aroused strong resistance from unions, in particular IG Metall. The district manager, Thorsten Gröger, described Volkswagen’s plans as a ‘deep stab to the heart’ of the workforce. Gröger asked the company to present valid plans for the future instead of focusing on job cuts. The situation is further complicated by the company’s willingness to outsource certain departments, which could lead to greater
job insecurity.
The next meeting between Volkswagen management and the works council is scheduled for Wednesday, when the company is also expected to publish its quarterly results. The tension is palpable and expectations are high, as workers are waiting for concrete answers about their employment security
.
