Volkswagen is exploring substantial cost-cutting measures, including widespread pay cuts and layoffs, as well as potential reductions or closures of its plants in Germany, according to a statement from the company’s works council on Monday.
The management recently outlined plans that propose a 10% pay reduction for all employees, along with wage freezes planned for 2025 and 2026, according to CNBC.
The head of the works council, Daniela Cavallo
indicated that these measures could lead to an estimated overall pay cut of approximately 18% for workers over the next few years.
The works council has indicated that employees may lose bonuses and additional payments associated with employment anniversaries due to these changes.
Cavallo said Volkswagen’s plans to include closing three factories and downsizing other facilities in Germany, which could significantly impact workers covered by specific collective wage agreements.
“In concrete terms, this means taking out even more products, volumes, shifts and entire assembly lines far beyond to what we have already done,” she said in a statement released Monday.
“All German VW plants are affected by this. None of them are safe,” Cavallo added.
She cautioned that Volkswagen’s plans include significant job cuts, with tens of thousands of positions potentially at risk.
Additionally, the council noted that the company plans to outsource certain departments to external firms or to its facilities located abroad, further complicating the job landscape for employees.
