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[BUSINESS] · Germany, Slovakia, Poland · 26 sources

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Volkswagen faces critical situation and potential mass layoffs

Volkswagen CEO Oliver Blume has characterized the company's current situation as ‘more than critical,’ warning that existing cost-cutting measures are insufficient to fund future technologies and products. Despite a solid operating margin of 3.8 percent, Blume noted that the company is overdimensioned, slow, and complex, with indirect costs exceeding those of comparable competitors by more than 30 percent.

The automaker is facing significant restructuring, with potential job cuts reaching up to 50,000 employees globally, though some reports suggest this figure could double. In Germany, the Zwickau-Mosel plant, a pioneer in electric mobility, is under scrutiny. While the plant has achieved its 2025 cost-reduction targets and maintains high productivity, it has seen its workforce drop from 11,000 to approximately 8,000. Plans include decommissioning one of its two production lines by 2027.

Saxony's Economic Minister, Dirk Panter, has advocated for the Zwickau site, stating that Volkswagen's future depends on it. Meanwhile, labor representatives, including Mike Rösler, are demanding clarity and long-term perspectives for workers beyond the current site guarantee which expires in 2030. The company is also working on a new compensation system for German employees, intended to launch in 2027.

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Bratislava · Dirk Panter · Mike Rösler · Oliver Blume · Volkswagen · Zwickau

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