German auto giant Volkswagen plans to cancel job guarantees for 110,000 of its workers, which could have serious consequences for many families and local communities in Germany. The move follows the need to cut costs after the company failed to meet projected profits, losing five billion euros last year, which informs edition of BILD.
At this time, the Volkswagen board has not yet announced how this financial shortfall will be covered. However, according to the company’s trade union, there is a real threat of closing one of the car plants and one of the components production plants in Germany. This can lead to large-scale cuts that will significantly affect the economic situation in the region.
Union president Daniela Cavallo has already expressed her concerns, saying the company’s management has failed to effectively address the issue, which is putting thousands of jobs at risk.
“We do not rule out the possibility of a strike. This is a matter of survival for many people. Volkswagen is facing big problems in Germany, and we are ready to fight for our rights.” — automotive expert Ferdinand Dudenheffer said in an interview with the publication.
The situation remains tense, and the employees of the concern are waiting for further decisions from the management that will determine their future.
