Official announcements from Volkswagen or reputable financial news outlets

Volkswagen Plans 10% Wage Cut, Close Three Factories in Germany to Save €4 Billion

Oct 28, 2024, 10:17 AM

Volkswagen is considering significant cost-cutting measures, including a 10% wage cut and a two-year wage freeze, to save €4 billion. The company plans to close at least three factories in Germany, including the Osnabrueck plant, and downsize all remaining plants, which could result in tens of thousands of job losses. The measures also include capping bonuses for top executives and outsourcing or shifting entire departments abroad. Volkswagen's Works Council has expressed strong opposition, with workers rallying at German car plants and calling for a government plan to kickstart electric mobility.