Volkswagen Puebla reduces production shift and cuts 1,200 jobs

Volkswagen de México has announced a reduction in production capacity at its Puebla plant, resulting in the indefinite suppression of one of the three production shifts. This adjustment specifically affects the segment responsible for manufacturing the Tiguan and Jetta models.

The workforce reduction involves approximately 1,200 workers. This includes 800 employees who obtained permanent status between August 2023 and August 2026, and roughly 400 workers over the age of 57 or those with medical restrictions who are being offered voluntary retirement packages with payouts of up to 150 percent.

The decision follows a contractual review and an agreement with the Sindicato Independiente de Trabajadores de la Industria Automotriz Volkswagen de México (SITIAVW). While the layoffs are proceeding, the company has proposed a global increase of 10.04 percent in wages and benefits, which will be subject to a vote by the plant's more than 7,000 workers. The company cited a challenging global and North American automotive market context for these measures.