Skoda Announces Job Cuts in Response to Electric Vehicle Rollout
Skoda, a major Czech car manufacturer, is preparing to reduce its workforce by around 6,000 employees. The job cuts are part of a cost-saving strategy to support the company’s shift towards electric vehicles (EVs). The company hopes to boost EV sales by eight percent.
Around 6,000 people could lose their jobs as Czech car making giant Skoda makes drastic cuts to keep up with an expensive electric vehicle rollout
The car manufacturer hopes to boost their electrical vehicles sales by eight per cent, amid a global drop in demand
Skoda is looking to continue its ‘electric evolution’ by selling a fully electric Octavia compact hatchback
The automotive industry faces challenges, as demand for EVs declines globally. In November, the head of Ford’s UK division voiced concerns regarding a crisis within Britain’s car industry, citing insufficient demand.
Despite the broader market trends, Skoda remains committed to its “electric evolution.” The company plans to sell a fully electric Octavia compact hatchback. Skoda already offers several fully electric vehicles, including the Enyaq and Enyaq Coupe SUVs, and the Elroq crossover.
Skoda CEO Klaus Zellmer, speaking to Automobilwoche, a German automotive publication, stated that the job reductions would stem from standard attrition. Introducing another battery electric vehicle, possibly the Octavia, would be beneficial for Skoda, he added.
A Škoda Auto spokesperson told MailOnline: ‘The company has been continuously managing personnel levels to maintain needed competitiveness of our plants in the Czech Republic, for many years. ‘Part of this is the program we communicated last year for reducing indirect staff by 15 percent by 2028 by utilising natural demographic turnover.’
The announcement of potential job losses follows the closure of an Audi mega-factory in Belgium, a move that resulted in the loss of 3,000 jobs, due to the dwindling demand for EVs. The Brussels Audi factory was considered the “cradle” of electric drive for the German carmaker.
In November, Luton’s 120-year-old Vauxhall factory announced plans to close
In the UK, a Renault and Dacia showroom in Doncaster will also be shutting down. Moreover, Vauxhall’s 120-year-old factory in Luton announced its closure in November, with Stellantis citing government EV sales objectives as a reason for closing the plant.
In a separate statement in November, Lisa Brankin, the chairman and managing director of Ford UK, urged the government to establish incentives, such as tax breaks, to encourage drivers to switch from gasoline and diesel vehicles. Ford has invested significantly in the development and production of EVs, with “well over” £350 million invested in the UK, she added.
Research from the University of Birmingham and the London School of Economics indicates that EVs are more reliable than traditional petrol and diesel cars and vans and have a comparable lifespan.
