Volkswagen plans short-time working for about 80,000 employees in Germany after the coronavirus pandemic forced the automaker to idle its European factory network.
Under German short-time working rules the state pays part of the reduced salaries for workers.
Businesses large and small face a disruption that “goes far beyond” the level of the financial crisis of 2008-2009, VW supervisory board member Bernd Althusmann said in a speech on Tuesday in Hanover, Germany.
Althusmann is the economy minister in Lower Saxony, where VW has its global headquarters.
VW, which employs about 670,000 people worldwide across the group, last week announced it will stop production in Europe.
Factories in other regions including Russia and South America have also halted operations since then, while VW’s operations in its largest market China are gradually ramping up output again after the shutdown.