Volkswagen (VW) has reached a deal with German unions to cut over 35,000 jobs and reduce capacity at its German operations. The agreement comes after weeks of tense negotiations that threatened to lead to mass strikes. The news was welcomed by European leaders, including German Chancellor Olaf Scholz, who said it ensured the company’s future and made Germany an attractive location for industry.
Porsche SE, VW’s largest shareholder, also backed the agreement, saying it would improve the company’s competitiveness and create a solid basis for future investments. Analysts are cautious, however, suggesting that the job cuts may not be enough to address stagnation in the European market.
The compromise was seen as hard-won, particularly by Lower Saxony State Premier Stephan Weil, who said it was urgently needed and tied to clear prospects for Volkswagen’s growth in Germany and the state. The deal will see VW adopt a new catalogue of measures aimed at reducing costs and improving competitiveness.
Source: https://www.reuters.com/business/autos-transportation/vw-union-agree-cut-35000-jobs-germany-avert-strikes-2024-12-20