Volkswagen Manager Bonuses Cut

BERLIN (Reuters) – A reduction in managers' bonuses at Volkswagen will lead to a 10% pay cut for the next two years, according to the Sueddeutsche Zeitung newspaper.

The cut follows a deal with unions to eliminate jobs and reduce production. Specifically, the reduction will impact May bonus payments, resulting in a 10% pay cut for 4,000 managers in 2025 and 2026. Subsequently, their pay will decrease by 8%, 6%, and 5% in the following three years.

A Volkswagen spokesperson declined to comment on the report, and representatives from the IG Metall union and the company's employee works council were unavailable for immediate comment.

Volkswagen, Europe's leading carmaker, announced extensive changes to its German operations last Friday, including over 35,000 job cuts and significant capacity reductions in a deal reached with unions after intense negotiations. This agreement aimed to prevent mass strikes amid broader issues affecting the German industry.