Volkswagen's €13.6M executive bonuses spark outrage amid mass layoffs
Volkswagen faces growing criticism over executive bonuses while planning deep job cuts. The company's board is set to receive €13.6 million in annual bonuses, even as profits plummet. Left Party co-leader Ines Schwerdtner has demanded the funds be redirected to workers instead.
Schwerdtner accused Volkswagen's leadership of triggering the company's economic downturn by slashing research and development spending. She argued that bonuses tied to net cash flow were unfair, as the rise in cash came from cutting investments rather than growth.
The board's bonuses have drawn particular anger as Volkswagen prepares to eliminate 50,000 jobs by 2030. Schwerdtner called the payouts unacceptable while employees face layoffs and uncertainty. She described the financial rewards as a result of 'accounting tricks' that prioritised short-term gains over long-term stability.
Volkswagen reported sharp profit declines last year, adding to pressure on management. Schwerdtner insisted the board should waive their bonuses entirely and redistribute the money to the workforce. The dispute highlights tensions between executive pay and the company's cost-cutting measures.
The row over bonuses comes as Volkswagen pushes ahead with sweeping job reductions. Schwerdtner's demands reflect wider concerns about fairness in how the company manages its financial struggles. The outcome could influence future decisions on executive pay and workforce stability.
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