Temporary hiring freeze at VW

Volkswagen has imposed a temporary hiring freeze at six locations in Germany. All locations in Lower Saxony and Hesse are affected: Wolfsburg, Hanover, Brunswick, Salzgitter, Emden and Kassel.

Image: Volkswagen

“Due to the ongoing efficiency programs at Volkswagen AG, external recruitment will be temporarily limited and no external positions will be advertised,” explained a company spokesperson. However, ongoing recruitment processes are not affected. There will also be a few exceptions, “for example to fulfil legal obligations”, according to a DPA report.

The VW Passenger Cars core brand has been negotiating the structure of the efficiency program with the Works Council since the beginning of October. In June, Volkswagen presented the key points of a savings program to increase profitability and generate money for investments in the transformation to e-mobility. The program is intended to reduce costs by ten billion euros by 2026 and thus contribute to increasing the return on sales to 6.5 per cent. After three quarters in 2023, the operating return on sales was 3.4 per cent.

For example, there are to be fewer variants and equipment options in order to streamline production. This may be more relevant for negotiations with the works council: VW wants to concentrate on high-volume model series. Niche models, such as the Arteon, are to be discontinued without a successor. If the volumes of the core models do not increase, capacity utilization will fall – and jobs will be at stake.

Emden and Hanover are also vehicle plants where MEB electric cars are built, but important components for the MEB models are also produced in the other plants – such as the electric motors in Kassel. The Saxon plant in Zwickau is not affected; Volkswagen Sachsen GmbH is organized independently.

In Saxony, however, the signs were not pointing to an increase in personnel: The fixed-term contracts of 270 employees were not extended, and production was also curtailed during the autumn vacation in Saxony at the beginning of October.

handelsblatt.com (in German)


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