A few days ago, VW and the German IG Metall union reached an agreement on cost-saving measures that will see over 35,000 jobs cut across the country by 2030. These layoffs are expected to save the company €1.5 billion ($1.5 billion) in labor costs annually. While the cuts are a blow to workers, around 4,000 managers will also feel the impact, facing significant pay reductions as part of the cost-saving efforts.
German sources indicate that managers will give up bonuses equivalent to 10% of their income in 2025 and 2026. In the following three years – 2027, 2028, and 2029 – bonuses will be reduced by a further 8%, 6%, and 5%, respectively. By 2030, it’s hoped that VW will have its finances under control and won’t need to make further pay reductions.
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