VW managers to get 10% pay cut in plan to slash bonuses, German newspaper reports

BERLIN (Reuters) – A reduction in managers’ bonuses at Volkswagen (ETR:) will lead to a 10% pay cut for the next two years, the Sueddeutsche Zeitung newspaper reported on Sunday, after the German carmaker struck a deal with unions to axe jobs and scale back production.

The reduction will apply to May bonus payments, leading to the 10% pay cut in 2025 and 2026 for 4,000 managers, the newspaper said. In the following three years, their pay will fall by 8%, 6% and 5%, it added.

A spokesperson for Volkswagen declined to comment on the report. Representatives of the IG Metall union and the company’s employee works council could not immediately be reached for comment.

Volkswagen, Europe’s top carmaker, announced sweeping changes on Friday to its German operations, including more than 35,000 future job cuts and sharp capacity reductions in the deal reached with unions after days of gruelling talks.

The agreement sought to avert mass strikes at the company, whose troubles have highlighted a broader slowdown in German industry.