Volkswagen CEO Oliver Blume has informed staff in an internal memo that the company may need to eliminate an additional 50,000 jobs. This potential reduction comes on top of 50,000 job cuts already agreed upon across the Volkswagen Group, including its Porsche and Audi subsidiaries. Blume's memo, seen by Reuters, confirms that the automaker is considering up to 100,000 job cuts in total to address a calculated 20% cost disadvantage compared to its competitors.
The memo follows angry calls from workers for management to explain its restructuring plans, which Blume presented to the company's supervisory board. These plans aim to streamline Europe's largest carmaker, which is grappling with billions of euros in tariff costs, intense competition in China, and pressure to enhance the efficiency of its German manufacturing network. Blume specifically mentioned four plants — Emden, Hanover, Zwickau, and Neckarsulm — for which competitive use cases in the 2030s cannot yet be confirmed.
While labor representatives on the committee have reportedly blocked proposals that included job cuts and the possible closure of factories, Blume emphasized a preference for "intelligent solutions" over plant closures. He has previously suggested options such as involving the defense industry or producing Chinese Volkswagen models in Europe to utilize underperforming factories. Despite the proposed widespread job reductions, Blume stated that the company is still assessing the necessary and feasible adjustments across all brands, companies, and regions.
