Volkswagen targets layoffs and 10% pay cuts amid plans for German plant closures, union says

Cars stand at a Volkswagen dealership on October 10, 2024 in Berlin, Germany. Sean Gallup | Getty Images News | Getty Images Volkswagen is considering widespread pay cuts and layoffs as well as the closure or size reduction of its plants in Germany, the company's works council said Monday. The Volkswagen management recently presented plans to the council that include a 10% reduction in pay across the board, as well as wage freezes in 2025 and 2026, according to Daniela Cavallo, head of the works council.

All factored in, the body estimates workers will suffer pay cuts of around 18% over the period. Volkswagen also intends to shut three factories and downsize all other plants in Germany, Cavallo said, adding that sweeping job cuts were part of carmaker's plan. CNBC has reached out to Volkswagen for comment.



This is a developing story and will be updated..