Volkswagen AG (VLKAY) said Wednesday it expects to lay off around 800 workers at its plant in Puebla, Mexico, by the end of January.

The workers, all of whom are either temporary staff or have contracts expiring, are mostly from the assembly line but include people from all areas of the plant, a Volkswagen de Mexico spokeswoman said.

After the cuts, the plant will have 9,413 technical staff and 13,218 total staff, she added.

The Volkswagen plant will resume operations Thursday after being closed since Dec. 20 for a vacation period that was extended to deal with falling global demand for cars.

Last year, the plant produced a record 450,802 cars, placing it among Mexico's top-three auto makers along with General Motors Corp. (GM) and Nissan Motor Co. (NSANY).

-By Paul Kiernan, Dow Jones Newswires; 5255-5001-5726; paul.kiernan@dowjones.com

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