Chattanooga, June 21: Volkswagen plans to lay off an unspecified numbers of employees from its Chattanooga city in Tennessee in the United States to drive efficiency and save costs. The German automobile maker said reducing the workforce would be part of implementing a global performance programme. A report said the Volkswagen layoffs would affect some administrative and salary positions.

A company spokesperson said that Volkswagen layoffs would "drive efficiency and cost savings at its core brand," citing a report by Local 3 News. The report said that the Volkswagen spokesperson also highlighted that positions, including "salaried" and "administrative" roles, would be affected in the layoff round for the U.S. business. Paytm Layoffs, Termination: Employees File Complaint With Ministry of Labour for ‘Unlawful Treatment’, Indian National Congress’ AIPC Says Will Fight for Them.

The report said that the job cuts would not impact the "hourly workers" at the assembly plant. The spokesperson further highlighted that Volkswagen would support the employees during this transition period. According to the report, the Times Free Press told that the Volkswagen layoffs would likely impact less than 50 positions at the Volkswagen Chattanooga location. The report also emphasised that the layoffs would not include any production workers.

According to another report by NewsChannel 9, when asked about the number of positions affected by this decision, the spokesperson said that it would lead to a small number of salaried and administrative employees leaving their positions. Further, the report mentioned that the changes would not be isolated to Volkswagen in Chattanooga. 

These reports mentioned that the company is implementing a global performance programme to cut costs and boost efficiency. This could hint at future layoffs at the company in other locations beyond the Chattanooga plant; however, it cannot be confirmed now. Bluevine Layoffs: Fintech Company Cutting 12% of Its Israeli Workforce To Adjust Priorities and Respond to Changing Market Needs.

The automobile industry, particularly the EV industry, including Tesla, Rivian, and Fiskers, recently announced mass layoffs, leading to thousands of people leaving their roles. These layoffs at electric car manufacturing companies were announced amid the ongoing price wars, slow demand and other reasons.

(The above story first appeared on LatestLY on Jun 21, 2024 07:17 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website