For the first time in its 87-year history, the German company Volkswagen has announced its intention to close plants in Germany and cut staff. This was reported by Bloomberg, according to UNN.
Volkswagen AG is considering unprecedented plant closures in Germany, locking horns with powerful labor unions as the country's most important industry fights for its future,
It is noted that potential measures to close the facilities also include an attempt to terminate the company's thirty-year agreement with employees to preserve jobs.
Volkswagen's main target is its passenger car brand, whose profits are rapidly declining amid the shift to electric vehicles and slowing consumer spending,
According to the corporation's CEO Oliver Blume, Germany is increasingly lagging behind in terms of competitiveness as a place to do business. The management intends to lay off up to 110 thousand employees in the coming years. In total, the company employs 673 thousand people. The closure of the plants will be the first in 87 years. The company currently has a deficit of 5 billion euros.
The economic situation has deteriorated again. Germany is falling further behind in terms of competitiveness,
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