Volkswagen to Cut Managerial Pay by €300 Million as Part of Cost-Saving Plan

The reductions, which disproportionately affect top executives, are part of a broader strategy to save €15 billion annually by 2030.

Volkswagen plans to reduce managerial pay by over €300 million by 2030, primarily targeting bonuses for 4,000 managers in Germany.
The company's board will face larger proportional pay cuts compared to other management and employees, though specific figures were not disclosed.
This decision follows a December agreement with unions to cut labor costs, reduce staff by 35,000, and lower production capacity by 734,000 units in Germany.
Volkswagen expects the overall cost-saving measures to generate net annual savings of €15 billion, including €1.5 billion in labor cost reductions.
Union representatives had pushed for executive pay cuts, citing poor strategic decisions by leadership as a factor in the company's financial challenges.