Volkswagen is reducing its workforce at its factory in Zwickau, Germany, and adjusting work schedules to shifts due to “market conditions.” The automaker had planned to make 540 of its employees who were hired in recent years with limited contracts permanent, but it won’t do so for 269 of them.
Volkswagen continues to be fully committed to the electrification path. However, in light of the current market conditions, we cannot extend 269 contracts that will expire shortly after their 12-month duration.
Approximately 10,700 people are employed at this particular factory, which manufactures six electric models from three brands within the VW Group. In 2018, Volkswagen announced a €1.2 billion investment to convert the Zwickau factory to produce only electric models while keeping the workforce stable, despite the fact that electric cars require fewer laborers than internal combustion engine vehicles.
However, the German automotive industry is currently facing increased competition from Tesla and Chinese automakers, as well as reduced demand in the European EV market due to high inflation and cuts in subsidies.