Volkswagen may need to eliminate around 50,000 additional jobs worldwide as it steps up efforts to reduce costs and remain competitive, according to an internal memo from chief executive Oliver Blume seen by Reuters.
The latest indication effectively confirms reports that Europe’s largest carmaker is considering cutting up to 100,000 jobs in total, after already agreeing to reduce about 50,000 positions across the group, including at Porsche and Audi.
Blume said Volkswagen had identified a 20% cost disadvantage compared with rival carmakers, prompting what he described as a “theoretical deduction” of another 50,000 jobs. He said the company was assessing “across all brands, companies and regions how many adjustments are actually necessary and feasible.”
The carmaker is under pressure from billions of euros in tariff costs, intense competition in China and the need to improve efficiency across its German manufacturing network as profits continue to weaken.
The memo followed demands from employee representatives for management to explain its restructuring plans after discussions with Volkswagen’s supervisory board last week. According to sources familiar with the matter, labour representatives rejected proposals that included job cuts and the possible closure of four factories.
Blume acknowledged uncertainty about the long-term future of plants in Emden, Hanover, Zwickau and Neckarsulm, but reiterated his preference for “intelligent solutions” rather than plant closures, including potential partnerships with the defence industry or the production of Chinese Volkswagen models in Europe.
Following the meeting, Volkswagen announced plans to reduce production capacity further and gradually halve its model range, although analysts said the measures may not be sufficient to address the group’s longer-term challenges.
