BERLIN: German car maker Volkswagen is reducing its staff at its manufacturing facility in the city of Zwickau amid low demand for electric cars, German media reported on Wednesday.
As per media reports Volkswagen would reduce staff by permitting fixed-term contracts to expire, which could hit hundreds of employees by the end of October.
More than 2,000 people work at the plant in East German city of Zwickau on a fixed-term contract, while the total number of workers at the factory is more than 10,000.
Zwickau plant produces six electric vehicle models
The Zwickau plant produces six electric vehicle models from three different brands of the Volkswagen Group.
Volkswagen in 2018 announced that would invest $1.29 billion to convert the plant to electric vehicle production facility. The company said that it would keep the workforce intact despite EVs requiring less labour than combustion engine cars.
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But the German carmaker is now facing intense competition from Tesla and Chinese automakers, as well as reduced demand in the European EV market due to rising inflation and cuts to subsidies.
