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Volkswagen Cutting 500 From Chattanooga Workforce

1,586 views · Published 25 April 2013 · 2:31 · Indexed 28 October 2026

Channel: WTVC NewsChannel 9 · 2013 · News & Politics

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Volkswagen will cut its Chattanooga plant workforce by 500 employees effective at the end of June according to a release from the company early Thursday morning.VW spokesperson Guenther Scherelis says the cuts are necessary to meet current demand of the award-winning Passat.  Production was ramped up to meet initial sales demands but after two years of production the market has changed.Scherelis says the current three shifts will be trimmed to two by May 13th. Workers losing their positions will be with the variable workforce, or contractors. Those changes will happen by the end of June.The employees are technically employed by Aerotek, a local staffing agency. The agency's account executive in charge of Volkswagen's contract says the temporary workers were well-informed of their part-time status before they were hired, and were never guaranteed full-time jobs. But he says he's working to secure future opportunities for those who are laid off. We've reached out to the Chattanooga Manufacturing Association, so there's some communication there in letting local Chattanooga manufacturers know that there are approximately 500 employees that will be available for employment, said Lucas Hiler, account executive with Aerotek.According to the release, no full-time Volkswagen employees will lose their jobs.Meanwhile, Hamilton County Mayor Jim Coppinger says the layoffs are no indication of Volkswagen's future here in the Scenic City. He assures us the car manufacturer is here to stay, and he stands by his decision to grant $500 million in government assistance and tax breaks to the company. Those tax breaks were given to them in order for them to commit to the billion dollar investment to the 2,000 jobs that they've created, and they've exceeding our expectations with the number of employees they continue to have, said Coppinger.After this round of layoffs, the company will still employ about 2,500 people. We're told layoffs will happen between May 13th and the end of June.By Natalie Jenereski

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