The largest employer in the Czech Republic is in big trouble. Thousands of brutal layoffs are expected

The most important Czech company is facing challenges that it has not yet faced in its modern history lined with successes. In addition to the hasty transformation from combustion engines to electric cars in the entire automotive sector, Škoda Auto now has to deal with one blow after another.

Tough situation

It started problems in the supply chain that caused a shortage of chips for cars. Although it has partially improved, semiconductors are still not available in the required quantity. Then a conflict broke out that closed a major market and caused further problems with subcontracting. On top of everything, energy prices have risen significantly, and to make matters worse, a promising market in the form of China has recently become a debacle.

The consequences of all these problems are now being written about in the new edition of Škodová trade union. Along with the election of the old Škoda trade union chairman Jaromír Povšík, it was said that the near future will not be easy at all.

According to the union leader, there will literally be a fight for jobs and even the preservation of plants in the Czech Republic. This is probably an allusion to recent public information that the Volkswagen Group is considering moving production from Germany and Central Europe to places where it would have cheaper energy.

Foto: Shutterstock

Worrying about work

Specifically, it sounds like there is a risk for 12,400 jobs that may be lost in the Czech Škodovka. Another threat lies in agency workers, who are easier to get rid of.

The head of Škoda, Klaus Zellmer, also admitted the difficult period in an interview for the E15 server. According to him, the company has enough orders for the first half of next year, but after that it can become really difficult.

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In addition, the largest Czech car manufacturer is no big exception. Up to a quarter of companies are considering layoffs in the next year. If it were even partially fulfilled, it would mean a rapid increase in unemployment and a collapse of the Czech economy.

Foto: Shutterstock

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