Volkswagen is weighing potential job cuts at its electric car plant in Zwickau, with reports suggesting more than 1,000 temporary employment contracts could expire by the end of 2025, pending a final decision in August.
The plans, reported by MDR Sachsen and other local media, are part of Volkswagen’s response to what a company spokesperson described as sluggish demand for electric vehicles within the VW Group. The focus is primarily on fixed-term contracts set to lapse next year, following previous non-renewals affecting several hundred positions in 2023 and 2024.
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“To adapt to current market conditions, Volkswagen intends to transition both production lines at the Zwickau plant to two-shift operations without night shifts after the summer break,” the spokesperson stated, emphasizing the company’s need to maintain flexibility should demand recover.
Currently employing approximately 9,400 workers, the Zwickau facility was transformed into a dedicated electric vehicle production site, a shift that significantly increased its workforce from 6,500 to 7,500 employees previously, as reported by MDR.
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Production at the plant includes Volkswagen’s ID.3 and Cupra Born models on one line, and the ID.4, ID.5, Q4 e-tron, and Q4 Sportback e-tron from Audi on another. Recent adjustments, such as temporary halts in production due to weak demand, have underscored the challenges faced by the plant despite earlier operational expansions.
The potential job cuts come amidst broader industry efforts to navigate fluctuating consumer demand and production constraints, particularly in the electric vehicle sector.
