Tag Archives: Jobs

News

Volkswagen Cracks Down on Absenteeism as Job Cuts and Production Pauses Mount

Volkswagen’s turbulent 2025 just got even more complicated. Already grappling with slowing demand, production stoppages, and looming job reductions, the automaker is now taking a hard line with its own workforce.

According to its latest internal discipline report, VW dismissed 548 employees in the first half of 2025 for violating company rules. Another 2,079 staff received formal warnings over the same period, and the company expects those numbers to climb before year’s end.

The main culprit? Unexcused absences.

Bild reports that more than 300 workers at VW’s six major German sites—Wolfsburg, Braunschweig, Emden, Hanover, Salzgitter, and Kassel—have already been let go this year for absenteeism. That matches the tally for all of 2024, showing just how quickly management’s patience has worn thin.

This isn’t a small issue for VW. Brand boss Thomas Schäfer said last year that absenteeism costs the company about €1 billion ($1.17 billion) annually. More recently, employees were reminded via the company’s intranet that repeated absences without a valid reason could result in immediate dismissal.

To be clear, Volkswagen’s workforce is massive—more than 560,000 employees worldwide—so a few hundred terminations hardly move the needle statistically. But the firings highlight the company’s increasingly zero-tolerance approach to discipline as it prepares for broader workforce reductions. VW has already announced plans to cut 35,000 jobs in Germany by 2030.

Meanwhile, demand challenges are forcing VW to trim output at several plants. Production at its Zwickau and Dresden sites—both key EV hubs responsible for the ID.4 and ID.7—will be paused for a week starting October 6. At Osnabrück, where VW builds the T-Roc Cabriolet (a model set to bow out in 2026), the plant will close for one week this month and remain idle at least one day a week through year’s end.

If there’s any good news, it’s that not all models are suffering. VW says the Golf, Tiguan, and Tayron are enjoying strong demand, and Wolfsburg will add special shifts to keep up with orders through December.

Still, the broader picture is hard to ignore: a company tightening its belt, cracking down on its workforce, and facing a slower, more uncertain road ahead in Europe’s increasingly competitive automotive landscape.

Source: Bild

News

Nissan Reports $4.5 Billion Loss, Cuts 20,000 Jobs in Sweeping Restructuring

Nissan Motor Co. is grappling with one of the most turbulent periods in its history as it battles mounting financial losses, sweeping job cuts, and internal dissent from shareholders. The Japanese automaker, once a key player in the global industry, is now facing a desperate need for restructuring after a series of setbacks that have eroded investor confidence and shaken its leadership.

During Nissan’s annual general meeting this week at its Yokohama headquarters, new chief executive Ivan Espinosa revealed that the company suffered a staggering ¥700 billion ($4.5 billion) net loss in the last fiscal year. The automaker also projected a further first-quarter loss of ¥200 billion ($1.38 billion), underscoring the depth of its financial woes. For the first time in years, the company offered no earnings forecast for the full year and announced it would suspend dividend payments, further frustrating shareholders.

Espinosa, who recently took the reins at Nissan, is stepping into a storm. The collapse of the long-rumored merger with Honda, combined with a deteriorating global market position, has left the automaker scrambling for stability. Nissan plans to cut 20,000 jobs globally and shutter seven production facilities in a bold effort to stem the bleeding.

Leadership changes were a focal point at the shareholder meeting, which was attended by 1,071 stakeholders. Former CEO Makoto Uchida and Renault board chairman Jean-Dominique Senard were both removed from Nissan’s board of directors, signaling a shift in corporate governance. However, the board rejected a particularly scathing shareholder proposal that criticized Uchida’s leadership as “extremely low” in capability and called for the resignation of the directors who appointed him.

Tensions were high throughout the session. Some shareholders accused Nissan of unfairly burdening frontline workers with the cost-cutting measures, while executives continued to hold their posts. Others expressed frustration over the suspension of dividends, calling it a betrayal of long-term investor trust.

One proposal sought Nissan’s intervention in the governance of Nissan Shatai, its publicly listed manufacturing subsidiary. The call comes amid growing pressure on Japanese conglomerates to address so-called “parent-child listings,” which critics argue can muddy corporate accountability. Although Toyota recently announced plans to take its listed subsidiary, Toyota Industries, private in a $33 billion move, Nissan rejected the proposal concerning Nissan Shatai, which was ultimately voted down.

As Nissan attempts to navigate these troubled waters, all eyes will be on Espinosa and the new leadership team to deliver a turnaround. With thousands of jobs on the line and a legacy brand at stake, the coming months will be critical in determining whether the company can reclaim its footing or continue its downward spiral.

Source: Reuters

News

Nissan closes 7 factories and cuts 20,000 jobs

The crisis in the automotive market, which has been going on for a long time, has left consequences for most manufacturers. One of them is Nissan, which presented a recovery plan that includes laying off a large number of workers. According to company representatives, Nissan plans to lay off more than 20,000 employees in the next two years.

2024 was a bad year for the Japanese company, which sold 3.35 million vehicles worldwide, a slight decrease compared to the previous year (3.37 million vehicles). This contributed to an 88 percent drop in operating profit (472 million) and a net loss of $54.5 billion.

The recovery plan, called Re:Nissan, should bring large financial savings ($3.4 billion), and it is not yet known which regions it will cover. The plan includes the closure of seven of 17 factories and cost optimization in the research and development, marketing, management and production departments.

Last year, Nissan tried to merge with Honda, but the proposal was rejected. Now, Nissan’s new CEO Ivan Espinosa believes that the company needs to change its approach to business and that this year should be a year of transition towards profitability and a better future.

Source: Reuters, Photo: EPA-EFE