The VW’s cutting cost plan in the wake of the emissions scandal will affect some employees at Zwickau plant in Germany, as 600 temporary jobs will be cut next year.

Volkswagen has to come up with at least 8.7 billion euros to cover the cost of the forthcoming recalls of cars affected by the cheating software. Thus, the automaker is trimming its expenditures from different operations, including jobs at its plants and is planning to reduce by 1 billion euros the 2016 investment strategy and cease some unprofitable models. The Wolfsburg-based company will also cut about 600 temporary jobs next year at a factory in Zwickau, Germany, labor representatives said this week. The factory, where the Golf hatchback and the Passat sedan are produced, will force employees to take mandatory holiday. “We must now adapt to a new situation in which job protection will again become more important than the creation of further employment,” said Jens Rothe, head of the works council of VW’s operations in the Eastern German state of Saxony.

This not so good news was brought about at a staff gathering in Zwickau and may precede further changes at VW’s transparent factory in Dresden where its 500 workers will be announced this week about the plant’s future use, as the production of the Phaeton model will be ceased. “Production of the Golf and Passat models at Zwickau will be optimized further next year and (work) processes will be organized in an even more economical way,” VW said, without commenting on planned changes at Dresden. For now, the permanent workers at VW’s German plants are safe as the carmaker has to reach some production targets, but there could be risks to jobs should the decline in sales persist.

Via Reuters


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