Volkswagen Faces Major Job Cuts and Factory Closures Amid Electric Vehicle Sales Slump

Declining demand for EVs prompts VW to cut 1,000 temporary jobs in Zwickau and close Audi's Brussels plant, leaving thousands of workers in uncertainty.

Volkswagen will let 1,000 temporary contracts expire at its Zwickau electric vehicle plant by the end of 2025 due to a significant drop in EV sales.
Audi, a VW subsidiary, announced the closure of its Brussels factory in February 2025, affecting 3,000 employees without a collective social plan agreement.
The Zwickau plant, which exclusively produces EVs, has seen a 14% decrease in European sales from January to September 2024 compared to the previous year.
Workers and unions have criticized both Volkswagen's leadership and government policies for failing to create competitive EV offerings and supportive market conditions.
Volkswagen is negotiating with unions over wage reductions and job guarantees, while broader challenges in the European auto industry include overcapacity and competition from Chinese and U.S. manufacturers.