Volkswagen Faces Job Cuts Amid Cost-Cutting Plan

Volkswagen's finance chief Arno Antlitz warned that the company has 'one, maybe two' years to implement deep cost cuts, including potential plant closures, due to a significant drop in demand for vehicles in Europe, which has left a shortfall of around 500,000 cars. Recent surveys show the German automotive sector's business sentiment has worsened, with Ifo's indicator declining sharply, indicating a lack of new orders and casting a shadow over upcoming labor negotiations. The company has decided to prematurely end a job security program that has been in place since 1994, raising concerns about job security among employees. Works council chief Daniela Cavallo criticized management for damaging trust and urged for transparency regarding the prioritization of a costly software partnership over job preservation. Economic experts suggest that while the austerity measures are harsh, they may be necessary to prevent Volkswagen from facing a crisis in the future. The situation has drawn attention from government officials, with promises of support for the automotive sector amid fears of economic decline in Germany.