Finance
VW managers to take combined 300-million-euro pay cut, reports local newspaper
Published by Global Banking & Finance Review®
Posted on January 24, 2025
1 min readLast updated: January 27, 2026
Quick Summary
Volkswagen's management will cut their pay by 300 million euros by 2030 as part of a cost-saving agreement with unions, aiming for 15 billion euros in annual savings.
Volkswagen Management to Implement 300 Million Euro Pay Cuts
BERLIN (Reuters) - Volkswagen's management will take pay cuts adding up to over 300 million euros ($310.08 million) by 2030, according to comments by VW human resources board member Gunnar Kilian to local paper Braunschweiger Zeitung published on Wednesday.
Volkswagen's board would take a larger cut proportional to their salary than the rest of management or the workforce, Killian told the paper, declining to provide further details.
Volkswagen and unions struck a landmark agreement in December to cut costs at the carmaker, pledging to reduce staffing by 35,000 by 2030 and cut capacity at its German plants by 734,000 units.
VW said the deal would allow savings of 15 billion euros annually in the medium term, including 1.5 billion in labour costs.
Unions had said during negotiations that leadership figures should also do their bit and take pay cuts, placing blame for the carmaker's malaise on poor strategic decisions by management.
($1 = 0.9675 euros)
(Reporting by Victoria Waldersee, Editing by Miranda Murray)
Key Takeaways
- •Volkswagen management to cut pay by 300 million euros by 2030.
- •Volkswagen board to take larger pay cuts than other management.
- •Agreement includes reducing staffing by 35,000 by 2030.
- •VW aims to save 15 billion euros annually in medium term.
- •Unions demanded leadership take responsibility for strategic errors.
Frequently Asked Questions about VW managers to take combined 300-million-euro pay cut, reports local newspaper
1How much will Volkswagen's management pay cuts total?
Volkswagen's management will take pay cuts adding up to over 300 million euros by 2030.
2Who will take a larger pay cut at Volkswagen?
Volkswagen's board will take a larger cut proportional to their salary than the rest of management or the workforce.
3What agreement did Volkswagen reach with unions?
Volkswagen and unions struck a landmark agreement to cut costs, which includes reducing staffing by 35,000 by 2030.
4What are the expected savings from the cost-cutting deal?
The deal is expected to allow savings of 15 billion euros annually in the medium term, including 1.5 billion in labour costs.
5What concerns did unions express during negotiations?
Unions expressed that leadership figures should also take pay cuts, blaming poor strategic decisions by management for the carmaker's issues.
