Volkswagen mulls drastic pay cuts amid $4.3B savings plan
In search of savings, Germany is taking increasingly radical steps. The German newspaper "Handelsblatt," citing internal sources at Volkswagen, reports on the brand's controversial plans regarding potential pay cuts.
11:32 AM EDT, October 28, 2024
According to "Handelsblatt," the company is considering reducing employee salaries by 10% and freezing any raises for at least two years. Additional benefits, such as performance and anniversary bonuses, are reportedly at risk. These decisions are intended to help the brand achieve its goal of saving at least $4.3 billion.
Meanwhile, employees criticize management for lacking a clear plan and future strategy. Since the beginning of October, brand executives have met with employee representatives weekly to analyze potential measures. The next round of discussions is set to take place on October 30. More details may be revealed after this date.
When asked for further information, Volkswagen’s spokesperson refused to comment on "Handelsblatt."
