Volkswagen set to close three German plants and cut thousands of jobs

Volkswagen’s management wants to close at least three plants, cut tens of thousands of jobs, and also slash pay by 10% for remaining staff, according to a statement from staff representatives.

The manufacturer is also seeking to downsize all remaining plants, added the document.

“This is the plan of Germany’s largest industrial group to start the sell-off in its home country,” said General Works Council Chairwoman Daniela Cavallo.

“All German VW plants are affected by this. None of them are safe!”

The announcement comes after Volkswagen recently issued its second profit warning in less than three months.

Weak demand in Chinese and European markets, along with a botched electric vehicle transition, have hit the manufacturer’s earnings.

If announced closure plans go ahead, this would be the first time Volkswagen has shut a factory on home soil in its 87-year history.

VW currently has 10 plants and 300,000 employees in Germany.

More to come…