Volkswagen is contemplating widespread pay cuts and layoffs in addition to the closure or dimension discount of its crops in Germany, the corporate’s works council mentioned Monday.

The Volkswagen administration lately offered plans to the council that embrace a ten% discount in pay throughout the board, in addition to wage freezes in 2025 and 2026, in response to Daniela Cavallo, head of the works council. All factored in, the physique estimates staff will endure pay cuts of round 18% over the interval.

Volkswagen additionally intends to close three factories and downsize all different crops in Germany, Cavallo mentioned, including that sweeping job cuts had been a part of carmaker’s plan.

CNBC has reached out to Volkswagen for remark.

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