Volkswagen’s troubles increased, news of layoff of 1 lakh employees and closure of factory created a stir
The world’s largest automobile manufacturer Volkswagen is preparing to make a big change in the coming year. According to media reports, the company is considering reducing the number of approximately 1 lakh employees to reduce expenses and strengthen the business. Along with this, some factories in Germany can also be closed.
Why is she taking this big step?
According to reports, Volkswagen CEO Oliver Blume recently discussed this plan in an important meeting of the company. It is being told that earlier the company was planning to reduce about 50,000 jobs, but now this number can be increased to about 1 lakh. At present, about 6.57 lakh employees work in Volkswagen Group. The company believes that by reducing expenses it can become stronger in the future.
Which factories may be affected?
According to the report, Volkswagen is also considering closing four factories in Germany in the coming time. These are said to include Audi’s Neckarsulm factory and Volkswagen’s Hanover, Zwickau and Emden plants. However, the company has not yet officially announced the closure of any factory.
After all, why does the company have to make cuts?
Volkswagen is currently facing many challenges. Increased import duty in America, weak sales in China and increasing competition from other companies in Europe have affected the company’s business. Especially the companies making electric cars are growing rapidly, due to which the pressure on Volkswagen has increased. That is why the company is planning to reduce its expenses and run the business in a new way.
Steps have already been taken
Volkswagen has already started many changes. The company has sold some of its businesses and thousands of employees have also agreed to leave the job voluntarily. Apart from this, the company has also reduced its annual production capacity as compared to before so that production can be done as per the demand.
Employees expressed their displeasure
Employee organizations and unions are opposing this new plan of the company. He says that if such a large number of jobs are eliminated or factories are closed, it will affect thousands of families. The union has clearly said that if the company goes ahead with such decisions, they will oppose it with all their might.
At present Volkswagen has only said that the company is working on new plans for the future. The final decision will be revealed only after the company’s board meeting in the coming time.
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