Potential plant closures and layoffs could impact VW's cost-saving measures
Volkswagen isn't ruling out shutting down factories and reducing workforce through layoffs as part of its cost-reduction strategy for its main VW division. The corporation has also scrapped its workforce protection pact, which in the past had kept layoffs at bay until 2029.
Autumn last year, Volkswagen's brand head, Thomas Schäfer, had already hinted at potential job losses to his staff. He suggested that the VW division was no longer competitive with its existing structures, work procedures, and high costs. Without substantial adjustments, he stressed, "we need to address the crucial problems, including workforce." By 2026, the cost-saving plan is projected to save 10 billion euros and boost the brand's operating margin from its current 3.4% to 6.5%.
Further information to come.
Volkswagen's cost-saving plan, aimed at saving 10 billion euros by 2026, may include dismissals to address workforce-related issues. The scrapping of the workforce protection pact by Volkswagen has potentially opened up the possibility for more dismissals in the future.
