German car giant Volkswagen has terminated a job security program and says it cannot rule out closures and redundancies amid a tough economic environment.
The company is reportedly looking to cut €4 billion ($4.25 billion) more than originally planned in a sweeping savings plan.
Workers’ representatives have promised to fight the plans.
The board said that the current strategy of offering reduced contracts and severance packages to employees nearing retirement was no longer sufficient to meet the company’s targets, and announced it was terminating a job security program which has been in place since 1994.
"The European automobile industry currently finds itself in a challenging and serious position," said Volkswagen chief executive Oliver Blume.
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