Volkswagen plans to freeze wages until 2030 and expand its layoff target to 100,000 employees.
According to Germany's Süddeutsche Zeitung, German automotive giant Volkswagen's management has proposed in internal documents to extend a salary freeze plan until 2030, affecting hundreds of thousands of its employees. This move is part of the company's "Group Target Vision" transformation strategy, aimed at controlling labor costs to address the most severe structural crisis in decades. This news follows Volkswagen's downward revision of its full-year earnings outlook in September and the doubling of its layoff target from approximately 50,000 to 100,000. The salary freeze, coupled with large-scale layoffs, has intensified labor relations tensions between management and unions, and is also weighing on the overall sentiment in the European automotive industry.
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