Volkswagen to Close Three German Plants, Cut Tens of Thousands of Jobs, Propose 10% Wage Cut

Oct 28, 2024, 10:33 AM

Volkswagen AG is considering significant cost-cutting measures to save approximately 4 billion euros. The automaker is exploring options such as a permanent 10% wage cut, a salary freeze extending through 2025 and 2026, forced layoffs, and outsourcing or shifting entire departments abroad. All German VW plants are affected, with plans to close at least three factories in Germany and downsize remaining plants, potentially resulting in tens of thousands of job cuts. These measures are part of Volkswagen's efforts to reduce costs and become more competitive amid a challenging economic environment. The company's top labor leader has expressed concerns about the impact on workers, and employees plan to pause production and hold rallies on Monday in response to the proposed factory closures and job cuts. The German government is aware of Volkswagen's situation, is in contact with the company, and is awaiting further comments.