Volkswagen (VW) CEO Oliver Blume has warned staff that a further 50,000 jobs could be axed, the first internal acknowledgement that total cuts may reach 100,000, Reuters reported, citing an internal memo. <\/p>\n
Blume is pushing to reduce costs at the company, which has seen profits decline due to tariff-related expenses, growing competition in China and the need for greater efficiency across its German manufacturing base. <\/p>\n
The group has already agreed to 50,000 job losses, including at its Porsche and Audi divisions. <\/p>\n
In the memo, Blume said the company had identified a 20% cost disadvantage relative to peer firms, necessitating additional cuts. <\/p>\n
This translates into a “theoretical deduction” of another 50,000 positions globally, the memo stated. <\/p>\n
“We are currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible”, Blume wrote. <\/p>\n
VW had earlier declined to comment on reports suggesting job losses could total as many as 100,000<\/a>. <\/p>\n The memo comes after workers pressed management to clarify its restructuring plans, which Blume outlined to the supervisory board on Thursday (9 July). <\/p>\n Sources said labour representatives on the board rejected the proposals<\/a>, which reportedly included job cuts and the possible closure of four plants. <\/p>\n “As of today, we still cannot confirm competitive use cases for the plants of Emden, Hanover, Zwickau and Neckarsulm in the 2030s”, Blume said in the memo. <\/p>\n He indicated a preference for “intelligent solutions” over closures, having earlier pointed to defence sector work or the production of Chinese VW models in Europe as possible uses for underutilised sites. <\/p>\n VW’s official statement following Thursday’s discussions did not reference job cuts or factory closures, focusing instead on plans to further reduce production capacity and gradually cut its model range by half. <\/p>\n “Of course, it’s understandable that not everything has been planned out down to the last detail yet, and that certain issues still need to be further discussed and evaluated,” Blume said. <\/p>\n