EMCC European Monitoring Centre on Change

Škoda Auto

Škoda Auto

Geographic Location

Country: Czechia
Region: Kralovehradecky; Severovychod
Location of affected unit(s): Vrchlabí


Sector: Manufacturing
Manufacture of transport equipment
29.1 - Manufacture of motor vehicles
Group: Volkswagen Group

Employment Effects

Announcement Date: 15-10-2012
Planned Job Reductions min: 200
Planned Job Reductions max: 200
Type of Restructuring: Internal restructuring
Foreseen End Date: 31-12-2012

Additional Information

Škoda Auto, a Czech carmaker, subsidiary of Volkswagen Group, is to cut 200 jobs at its plant located in Vrchlabí by the end of 2012. This is due to termination of the Roomster and Octavia assembly.

Employees concerned are offered the opportunity to work in other Škoda factories (Mladá Boleslav, Kvasiny) or to leave with severance pay representing up to 30 average salaries (more than 960,000 CZK) for those close to retirement. It was stated that the majority of employees will choose the generous severance pay.

At the beginning of 2012, Škoda employed 25,800 people, the highest number in the company’s history. Last year, the firm created 1,650 new jobs.