Puebla Government Monitors Volkswagen’s Plan for Potential Workforce Adjustments

Web Editor

September 22, 2025

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Volkswagen of Mexico Announces Automation Plan

The Puebla state government will closely observe Volkswagen of Mexico’s decision regarding a potential 15% reduction in its workforce, according to Víctor Gabriel Chedraui, Secretary of Economic Development and Labor (Sedetra).

Background on Volkswagen of Mexico

Volkswagen of Mexico, located in Cuautlancingo, Puebla, has 7,222 unionized workers. This number has been maintained through voluntary early retirements in recent years.

Current Labor Situation

Despite the potential workforce reduction, Chedraui emphasized that the labor situation in Puebla remains positive. The state has organized several job fairs throughout the year, where auto parts suppliers participate and work with other automakers in Mexico.

Volkswagen’s Automation Plan

Last week, Volkswagen of Mexico announced its plan to implement automation in order to increase efficiency in vehicle production. The company aims to optimize its operations in Puebla.

Uncertainty and Preparation

Chedraui clarified that the Puebla government respects Volkswagen’s decisions but hopes for minimal labor impact or no reduction at all. He mentioned that they have held meetings with the independent union and Volkswagen representatives to understand the situation better.

The Sedetra head stated that they are currently waiting for October to learn about the company’s stance, acknowledging that the reduction could be 10% or 5%, rather than 15%. He also mentioned that they are preparing alternatives to safeguard employment in Puebla.

Key Questions and Answers

  • What is the potential workforce reduction? Volkswagen of Mexico is considering a 15% reduction in its workforce.
  • Who is Víctor Gabriel Chedraui? He is the Secretary of Economic Development and Labor (Sedetra) for the Puebla state government.
  • How many unionized workers does Volkswagen of Mexico have? The company has 7,222 unionized workers in Puebla.
  • What is the current labor situation in Puebla? Despite the potential reduction, the overall labor situation is positive due to job fairs and collaborations with other automakers.
  • What is Volkswagen of Mexico’s automation plan? The company aims to implement automation to increase efficiency in vehicle production.
  • What is the Puebla government’s stance on the potential workforce reduction? The government respects Volkswagen’s decisions but hopes for minimal labor impact or no reduction at all.