Cost Cutting Plan: The world’s leading car manufacturing company Volkswagen has also fallen into crisis. The company has prepared a big cost cutting plan. Under this, many plants of the company will be closed. Besides, salary will also be cut by 10 percent. Apart from this, the possibility of layoff is also being expressed. Information regarding this will be given to the employee union soon. This is a big shock for the employees of the company.
Increment will not be given and chances of reduction in bonus also
Based on the report of Handelsblatt Financial Daily, the report of Economic Times has claimed that Volkswagen has planned to close many of its plants in Germany. According to the report, the company’s CEO Oliver Blume has made a cost cutting plan of 4 billion euros ($4.3 billion) for Volkswagen Group. Such steps are being taken for the first time in the 87 year history of the company. Handelsblatt has claimed that apart from the 10 percent salary cut, the company has also decided that increments will not be given in 2025 and 2026. Reduction in bonus is also being considered.
Employees may strongly oppose these plans
It is feared in the report that employees may strongly oppose these plans. The employee union says that the company is only focusing on making profit. The management ideology is not right. Volkswagen had surprised employees by giving information about restructuring in September. The company had said that the cost of production was increasing. They are having to spend a lot by switching to electric vehicles. Besides, we have to face strong competition in markets like China. The company claims that this is happening with all the companies.
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