Volkswagen is making significant moves to reduce costs, including cutting salaries for its managers.
The German automaker announced on Sunday that it has agreed with the labor union to address job reductions and decreased production volume. Manager bonuses will be slashed as part of the deal, leading to a 10% salary reduction over the next two years.
The pay cuts will begin with the May bonus payments, affecting 4,000 managers in 2025 and 2026. Over the next three years, managers’ salaries will decrease by 8%, 6%, and 5%, respectively.
These salary cuts come alongside major changes to Volkswagen’s German operations. After several days of intense negotiations with the union, the company revealed plans to eliminate more than 35,000 jobs and drastically reduce its production capacity.
This agreement, reached to avoid a large-scale strike, reflects the German industry’s slowdown.
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