German auto giant Volkswagen will cut all its temporary staff as part of its efforts to tide over the ongoing financial crisis, board chairman Martin Winterkorn has said.
Volkswagen has about 16,500 temporary workers among some 330,000 employees worldwide in 2008, according to a report by Spiegel Online on Saturday.
"It is not nice for those affected, but there is no other solution," Winterkorn was quoted as saying.
Permanent employees are not affected by the layoff plan for now, he said, noting that the company plans to cut auto output and reduce working hours.
"We can thus limit production and ensure (keeping) permanent personnel. I do not see any problem for this year," he said.
Volkswagen sales dropped 15 percent in January due to the fall in demand amid the global financial and economic downturn. The company foresees a 10 percent decline in sales in 2009.