Volkswagen’s Management to Take Pay Cuts to Cut Costs
VOLKSWAGEN’S management will take pay cuts adding up to over 300 million euros (S$423.4 million) by 2030, according to comments by VW human resources board member Gunnar Kilian to local paper Braunschweiger Zeitung published on Wednesday (Jan 8).
Larger Cuts for Top Management
Volkswagen’s board would take a larger cut proportional to their salary than the rest of management or the workforce, Killian told the paper, declining to provide further details.
Cost-Cutting Agreement
Volkswagen and unions struck a landmark agreement in December to cut costs at the carmaker, pledging to reduce staffing by 35,000 by 2030 and cut capacity at its German plants by 734,000 units.
Savings Expected
VW said the deal would allow savings of 15 billion euros annually in the medium term, including 1.5 billion in labour costs.
Unions’ Demand
Unions had said during negotiations that leadership figures should also do their bit and take pay cuts, placing blame for the carmaker’s malaise on poor strategic decisions by management.
Conclusion
In an effort to cut costs and improve its financial performance, Volkswagen’s management will take pay cuts amounting to over 300 million euros by 2030. The top management will take a larger cut proportional to their salary, reflecting the company’s commitment to reducing costs across the board.
FAQs
Q: How much will Volkswagen’s management take in pay cuts by 2030?
A: Over 300 million euros (S$423.4 million)
Q: Will all management and workers take the same pay cut?
A: No, top management will take a larger cut proportional to their salary.
Q: What is the expected savings from the cost-cutting agreement?
A: 15 billion euros annually in the medium term, including 1.5 billion in labour costs.
