Cars parked inside a Volkswagen dealership in Berlin, Germany, on October 10, 2024.
Sean Gallup | Getty Images News | Getty Images
Volkswagen’s works council said on Monday the company was considering large-scale wage cuts and layoffs, as well as closing or downsizing German plants.
Works council president Daniela Cavallo said Volkswagen management recently submitted plans to the council that include a 10% across-the-board pay cut and a wage freeze in 2025 and 2026. Taking all factors into account, the agency estimates workers will suffer about an 18% pay cut during this period.
Volkswagen also plans to close three plants and reduce the size of all other plants in Germany, Cavallo said, adding that large-scale layoffs were part of the automaker’s plans.
CNBC has reached out to Volkswagen for comment.
This is a developing story and will be updated.
