Volkswagen is implementing significant cost-cutting measures to enhance its competitiveness. The company plans to abolish anniversary bonuses for over 10,000 employees, which can amount to up to 2.9 times an employee's monthly salary.
In addition to cutting bonuses, Volkswagen is also terminating its employment guarantees, with potential plant closures and a proposed 10% reduction in tariff wages on the table. These measures aim to address financial challenges and secure the automaker’s future amidst a broader industry crisis.
Volkswagen operates ten plants across Germany, with half of its 120,000 employees based in Wolfsburg. The company’s decision has sparked concern over the impact on jobs and the regional economy, especially among rural suppliers.
Despite the financial strain, the majority of the German public opposes state intervention to rescue the company. The state of Lower Saxony, holding a stake in Volkswagen, plays a crucial role in these negotiations.
As the company navigates these turbulent times, the focus remains on ensuring long-term sustainability and maintaining its competitive edge in the global automotive market.
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