Currently reading: Volkswagen to close three factories and cut jobs in major costs plan

Restructuring of German giant includes 10% salary reduction for all staff and two-year pay freeze

The Volkswagen works council has outlined cost-cutting plans that threaten to reshape the company's operations in Germany.

In a meeting today, council chair Daniela Cavallo told workers the company’s board plans to shutter at least three of Volkswagen’s 10 German production facilities, while reducing capacity at the others, asserting: "None are safe!"

The closure of any plant would be a first for Volkswagen in its 87-year history.

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