Volkswagen AG could force through decisions on plant closures this year, paving the way for more than 15,000 job cuts, according to analysts at Jefferies, Report informs referring to Bloomberg.
The automaker could shutter production facilities without needing approval from the supervisory board, leading to possible provisions of as much as €4 billion ($4.4 billion) in the fourth quarter, Jefferies said Monday, citing comments from VW executives. The board has in the past blocked management’s restructuring efforts.
“Unions should feel pressure to reach new agreements while VW will be in position to force layoffs,” the analysts said in a note that cited comments VW made during a roadshow in North America. “There is risk of plant disruption, but unions can only strike on pay, not plant closure or layoffs if the latter are not contractually protected.”
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