Volkswagen denies possible loss of 30,000 jobs

The boss of the manufacturer would have mentioned significant job cuts that could be imminent, according to information from the German daily Handelsblatt, Earlier in the day.

The Volkswagen boss’s entourage denied on Wednesday that the automaker may have to cut up to 30,000 jobs to maintain competitiveness in the electric transition, contradicting prior press information.

“There is no question of a reduction of 30,000 jobs”, told AFP a source close to Herbert Diess, CEO of the German manufacturer who is seeking to regain competitiveness after months of decline in sales of its vehicles due to the health crisis. This statement contradicts initial information, published by the Handelsblatt and confirmed by a source interviewed by AFP, according to which significant job cuts could be imminent, in particular at the historic headquarters of Wolfsburg.

Herbert Diess “Spoke of his fears for the future of the company” and the issue of excessively high costs “Compared to the competition” at a meeting of the supervisory board on September 24, writes the business daily. “Volkswagen’s restructuring could threaten one in four jobs at the VW brand” and “A reduction of up to 30,000 jobs is possible”, adds the newspaper, which revealed internal discussions on Wednesday.

Herbert Diess exhibited “Speculations on an extreme scenario” referring to the introduction of the four-day week in 1994 which “At the time” To “Saved nearly 30,000 jobs”, had qualified a union source within the supervisory board, questioned by AFP. However, there is “a consensus” as to the fact that “If the necessary adjustments are not made in the coming years, this could in the extreme case have consequences for employment”, underlined this source.

“A reduction of 30,000 jobs is absurd”

Another source also questions the confrontational nature of the meeting, while the Handelsblatt evokes a “Shine” and the “anger” members of the supervisory board faced with the threat of job cuts. “We have to take care of the competitiveness of our plant in Wolfsburg”, said a spokesperson for Herbert Diess, referring to competition from Tesla, which is currently building its new plant in Germany, considered more efficient. “The debate is launched and there are already a lot of ideas” but “no concrete scenarios”, he added to AFP.

“Generally speaking, a loss of 30,000 jobs is absurd”, reacted a spokesperson for the works council. Herbert Diess has already spoken to executives about a major reorganization of the Wolfsburg site with the demolition and reconstruction of several buildings as part of the “Trinity project”, a new range of vehicles supposed to be more competitive. “We are launching the race against Tesla” and “Trinity will revolutionize Wolfsburg”Herbert Diess tweeted in early October. Volkswagen’s reorganization should be discussed on November 12 at the meeting of this body devoted to a multi-year investment plan.


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