Volkswagen could decide to slash temporary posts as a response to a declining demand in Europe.

Volkswagen could decide to slash temporary posts as a response to a declining demand in Europe.

The good news is they won't close any plants and there are no plans of diminishing its permanent workforce. In an interview given to Austrian broadcaster ORF last week, Volkswagen CEO Martin Winterkorn said "we will not withdraw any capacity from Europe but rather preserve capacity in Europe.” However, he added "we will have to think about temporary staff."

Earlier this month Volkswagen announced 500 job cuts at the Chattanooga factory due to Passat oversupply. The factory has two 10-hour Monday-Saturday shifts with three teams but from May 13 they will switch to two 10-hour shifts Monday-Thursday with two teams.

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Volkswagen could reduce temporary staff in Europe, won't close factories