Volkswagen is assessing plans to cut up to 100,000 jobs worldwide as Europe’s largest automaker intensifies efforts to improve competitiveness amid weak profits, rising tariff costs and mounting pressure in China.
Reuters reported that Chief Executive Oliver Blume told staff in an internal memo that after already agreeing to eliminate 50,000 positions across the group, including at Porsche and Audi, Volkswagen may need to reduce a further 50,000 jobs to close an estimated 20% cost gap with rival automakers.
Blume described the additional cuts as a “theoretical deduction”, adding that the company is evaluating how many workforce reductions are necessary and feasible across its brands, businesses and regions.
The memo marks the first confirmation that Volkswagen is considering up to 100,000 job cuts, following earlier media reports that the company had declined to comment on.
The proposed restructuring, presented to Volkswagen’s supervisory board last week, reportedly includes potential job reductions and the possible closure of four factories. Labour representatives on the board are said to have opposed the proposals.
Blume also acknowledged uncertainty over the long-term future of the group’s plants in Emden, Hanover, Zwickau and Neckarsulm, saying their competitiveness beyond 2030 has yet to be established.
He added that Volkswagen would prefer alternatives to plant closures, including repurposing facilities for defence manufacturing or producing Chinese Volkswagen models in Europe.
