Volkswagen reportedly won’t give promotions to any managers next year due to … – The Verge
Volkswagen’s massive diesel emissions scandal isn’t just an embarrassment for the company: by many estimates, it’s also going to cost it tens of billions of dollars in fines, lawsuits, and recalls. So the company needs to find ways to cut back spending — and it’s turning to its employees to make up some of that extra cash.
Employees in managerial positions shouldn’t expect any raises next year, according to a report from German business magazine Manager Magazin. Sources tell the outlet that promotions for managers at Volkswagen will be frozen for all of next year.
The company is finding other ways to save, too. According to the report, Volkswagen is modifying its plans for the next version of its extremely popular Golf. The Mk8 will reuse many components from the current generation Golf, according to the magazine’s sources. It’s said that the move will save the company hundreds of millions.
That decision is likely just one of many to come out of Volkswagen’s cuts to R&D. Earlier this month, new CEO Matthias Müller told employees, “We will review all planned investments, and what isn’t absolutely vital will be canceled or delayed.” He added, “I will be completely clear: this won’t be painless.” The company spent roughly $17.4 billion on research last year — a figure that’s more than Apple and Google combined. As much as a billion per year may be slashed from that budget, and job cuts are apparently on the way as well.