Volkswagen is cutting numerous jobs at its electric car factory in Zwickau. The company announced that 269 fixed-term contracts that are about to expire after a twelve-month period will not be renewed.

Shift work will probably also have to be adjusted. The specific procedure will be coordinated with the employee representatives in the next few days. A works meeting was called at the plant for Thursday.

The reason given was “the current market situation”. In view of high inflation and declining subsidy premiums, buyers are holding back on electric cars. The Zwickau factory only builds electric cars for the Volkswagen, Audi and Cupra brands. It is feared that other employees with fixed-term contracts could now meet a similar fate and have to vacate their jobs. Around 10,700 people work in the factory.