VW savings plan: 4,000 managers have to forego income!

VW savings plan: 4,000 managers have to forego income!

In a drastic step, Volkswagen decides to ask management to pay. As the South German newspaper Reported, salary cuts are planned for around 4,000 managers, which will extend over several years. Specifically, the aim is for a ten percent decrease in annual salaries for 2025 and 2026, which is to be achieved primarily through a significant reduction in the May bonus. Managers will also have to expect further losses in the following years, which will total eight, six and five percent by 2030. The details are already set out in the relevant operating agreement, as can be seen from unconfirmed sources.

Background of the savings plan

The decision is part of a comprehensive savings plan that is intended to force Volkswagen to cut more than 35,000 jobs by 2030. This job reduction should be designed in a socially responsible manner so that no redundancies are made for operational reasons until the end of 2030. At the same time, VW has made it clear that there will be no plant closures in Germany in the near future, although the technical capacity of the plants is to be permanently reduced by 734,000 units, which corresponds to around a quarter of the production capacity in Germany. Loud Daily Mirror IG Metall and the works council have already spoken out in favor of management involvement in the solution and expect that the board will also actively contribute to saving.