Volkswagen considers pay cuts as part of £3.5bn savings drive
In search of savings, Germany is taking increasingly radical steps. We're not giving up on the Chinese market but we need to face the facts
According to Handelsblatt, the company is considering reducing employee salaries by 10% and freezing any raises for at least two years. Additional benefits such as performance bonuses and anniversary bonuses are also reportedly at risk. These decisions will bring the brand closer to saving at least £3.5 billion.
Meanwhile, employees criticise management for lacking a clear plan and future strategy. Since the beginning of October, brand executives have met with employee representatives weekly to analyse potential moves. The next round is set to take place on 30th October. It is possible that, after this date, we will learn more details.
When asked for details, Volkswagen's spokesperson refused to comment on "Handelsblatt."
