Volkswagen is slashing 1,000 temporary jobs at its Zwickau plant due to a steep decline in demand for electric cars. With the shift towards e-mobility not delivering the expected results, the company finds itself in a tough spot, forcing it to cut costs and restructure.
The plant, once a hub for electric vehicle production, will see these job cuts by the end of 2025.
This move highlights the growing crisis Volkswagen has faced for months, with significant profit losses, especially in its electric car sector. The Zwickau plant, heavily reliant on e-cars, is now feeling the pinch. Employees have voiced their frustration with both the company and the political leadership, expressing disappointment in an open letter. “We feel let down by politics and the board,” the workers write, adding that the promised “product fireworks” from the Volkswagen leadership never materialized. They also criticized the lack of action from policymakers to create a thriving e-mobility market, leaving the plant with stagnant sales.
But it’s not just in Germany where Volkswagen is tightening its belt. The company is also pulling back in China, where it has seen a dramatic drop in sales. Instead of the projected six million vehicles in 2022, Volkswagen only expects 2.5 million for 2023. This sharp decline in the Chinese market has pushed the company to sell off several plants and take a tough austerity approach, aiming to save 17 billion euros by 2026. The cuts and restructuring, including selling some of its 26 Chinese factories, signal a major shake-up for the once-dominant auto giant.
