Volkswagen cuts 10% of managers’ salaries as part of bonus reduction plan

The Süddeutsche Zeitung newspaper revealed on Sunday that the reduction of managers’ bonuses at Volkswagen Cars will lead to a 10% reduction in wages over the next two years, after the company reached a deal with unions regarding layoffs and production cuts.

The newspaper said that the reduction will apply to May bonuses, leading to a 10% reduction in wages in 2025 and 2026 for 4,000 managers.

It indicated that in the following three years, their wages will decrease by 8%, 6% and 5% respectively. According to what was reported by CNBC

Volkswagen, Europe’s largest carmaker, announced last Friday comprehensive changes to its operations in Germany, including plans to lay off more than 35,000 employees and sharp reductions in production capacity as part of the deal reached with unions after days of difficult talks.

The deal is aimed at averting mass strikes at the company, whose problems have highlighted a broader slowdown in German industry.