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Volkswagen to Close Three German Plants, Cut Jobs, Enforce 10% Wage Cuts to Save €4 Billion

Oct 28, 2024, 10:54 AM

Volkswagen AG is planning significant cost-cutting measures, including closing at least three factories in Germany and laying off tens of thousands of employees, according to the company's works council head, Daniela Cavallo. The management plans to permanently reduce salaries by 10% and freeze wages in 2025 and 2026. Proposals include forced layoffs and capping bonuses for top managers. All German VW plants are affected by these measures, and the management intends to downsize remaining plants and possibly outsource or shift entire departments abroad. The works council has called on the German government to present a plan to kickstart electric mobility and has warned that there is a risk they will break off talks. Volkswagen aims to save 4 billion euros through these restructuring efforts to enhance competitiveness amid rising costs and a struggling export sector.