The German manufacturing industry is facing serious challenges that could lead to massive job cuts. High energy prices, weak exports and the rapid development of technology create an unfavorable environment. The Federal Employment Agency of Germany recorded an increase in unemployment to 6%, which is especially alarming for highly qualified workers. The automotive industry, a key sector of the German economy, is experiencing difficulties due to the high demand for electric vehicles. The production of electric cars is less labor-intensive, which leads to job cuts. Volkswagen, one of Germany's largest automakers, has been forced to reconsider its plans and abandon job guarantees in force since 1994. The company is considering the possibility of closing its plants in Germany, which would be an unprecedented event in the history of the concern. Volkswagen management explains the need to take tough measures due to the complication of the market situation caused by the emergence of new players, including foreign manufacturers of electric vehicles. The goal of the savings program adopted in 2023 is to increase the company's profit by 10 billion euros by 2026.
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