Volkswagen has launched an inquiry into Changzhou Xingyu Automotive Lighting System following the dismissal of over 100 recent graduates.
Key facts
- •Volkswagen launched an investigation into its supplier, Changzhou Xingyu Automotive Lighting System, following the layoffs.
- •The layoffs involved 107 out of 440 recently hired graduates.
- •Affected employees were offered either a voluntary exit with half a month's salary or reassignment to assembly-line work.
- •The dismissals were attributed by the company to soft business performance.
- •The controversy began in early August in Changzhou, Jiangsu province.
Volkswagen is investigating Changzhou Xingyu Automotive Lighting System, a major Chinese auto parts supplier, after the company laid off more than 100 recent university graduates. The layoffs, which occurred in Changzhou, Jiangsu province, have triggered public outcry and prompted an official inquiry into the firm's employment practices.
By the numbers
Details of the layoffs
The dismissals began in early August when Xingyu reportedly informed a group of new hires—who had joined the company only one month prior—that headcount adjustments were required due to soft business performance. The company offered the affected graduates two options: sign a voluntary exit agreement citing personal reasons for half a month's salary, or accept reassignment to lower-paid assembly-line positions despite being hired for research, engineering, or management roles.
Official figures and company profile
Changzhou Xingyu Automotive Lighting System is recognized as China’s largest manufacturer of auto lighting components by revenue, with a client list that includes Volkswagen, BMW, and BYD. According to the Changzhou Municipal Human Resources and Social Security Bureau, the company had hired 440 fresh graduates in total, ultimately reaching negotiated terminations with 107 of them.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by SCMP Business.
