Skoda like many other automakers, is facing significant challenges due to the costly transition to electric vehicles. Here's what Daily Dazzling Dawn gathered-Cost of Electrification:The development and production of electric vehicles require substantial investments in research, development, and new manufacturing technologies. This is putting financial pressure on many car manufacturers.This pressure is leading to cost cutting measures.

Job Cuts: Reports indicate that Skoda is planning to cut around 6,000 jobs as part of a cost-cutting drive to manage the expensive rollout of its electric vehicle strategy.This is happening in a climate of a global drop in demand for vehicles.

 Broader Industry Trends:It's important to note that Skoda is not alone. The entire automotive industry is undergoing a major transformation, and many companies are taking similar steps to reduce costs and adapt to the changing market.Also the Volkswagen group, that Skoda is a part of, has also been reported to be looking at large scale cost cutting.In essence, the shift to electric vehicles is forcing Skoda and other automakers to make difficult decisions to ensure their long-term viability.

Around 6,000 people may lose their jobs as Czech automaker Skoda makes dramatic cuts to keep up with the costly electric vehicle launch. The automaker wants to increase electric vehicle sales by 8% despite a global dip in demand. The pricey rollout of electric vehicles may result in cost-cutting across the company, with up to 15% of their 41,000 staff globally out of work. A global shortage of demand has impacted the electric vehicle business, and in November, the CEO of Ford's UK unit warned that Britain's car industry is in crisis due to insufficient demand.But Skoda is looking to continue its 'electric evolution' by selling a fully electric Octavia compact hatchback.

The Czech manufacturer already boasts a fleet of fully electric vehicles, including the Enyaq and Enyaq Coupe SUVs, and Elroq crossover.

Skoda CEO Klaus Zellmer told Automobilwoche, a German automotive newspaper, that job cuts will occur because of natural fluctuation.He said it would 'do Skoda good' to introduce another battery electric vehicle and the Octavia could be a top seller.Skoda has been contacted for comment. 

News of the potential job losses come days after an Audi mega factory in Belgium closed, as tanking demand for electric vehicles saw 3,000 jobs cut.The closing Audi factory in Brussels was billed as the 'cradle' of the German carmaker's electric drive.

Audi first said it would restructure the plant in July, with suggestions that it was considering an early end to production there sparking huge protests in the following months.

Audi said a global fall in demand for high-end electric SUVs had tanked demand for its Q8 e-tron, to which the site was exclusively dedicated.

Production boss Gerd Walker said the closure was 'painful' and it was the 'toughest decision' he has made in his career.

In the UK a Renault and Dacia showroom in Doncaster will shut.

And in November, Luton's 120-year-old Vauxhall factory announced plans to close, with Stellantis blaming government EV sales targets for the decision to shutter the factory.

The same month, Lisa Brankin, the chairman and managing director of Ford UK, called for the government to urgently introduce 'incentives' such as tax breaks to convince drivers to switch away from petrol and diesel.She said Ford has invested 'significantly' in the production and development of EVs, with 'well over' £350million invested around electrification in the UK, adding: 'So we kind of need to make it work.'

Although electric vehicle sales have slumped, the cars are more reliable than traditional cars and vans with petrol and diesel engines, researchers from the University of Birmingham and the London School of Economics found.