Volkswagen CEO flags 50,000 extra job cuts to staff as costs squeezed

BERLIN — Volkswagen may need to eliminate around 50,000 additional jobs as the automaker seeks to remain competitive in an increasingly challenging global car market, CEO Oliver Blume said in an internal memo to employees.

The statement effectively confirmed for the first time that the company is considering reducing up to 100,000 positions worldwide as it works to lower costs and improve efficiency amid declining profits, rising tariff expenses, stronger competition in China, and pressure to restructure its German manufacturing operations.

Volkswagen has already agreed to cut about 50,000 jobs across the group, including at its Porsche and Audi subsidiaries. Blume said the company still faces a 20% cost disadvantage compared with similar competitors, requiring further reductions.

The memo, seen by Reuters, said the additional cuts represented a "theoretical deduction" of another 50,000 jobs globally, though the company is still assessing the actual number of positions that may need to be adjusted.

"We are currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible," Blume said in the memo.

Volkswagen Prefers Alternative Solutions Over Plant Closures

The company had previously declined to comment on reports that it was considering up to 100,000 job losses.

Blume's message came after workers demanded greater clarity from management regarding the automaker's restructuring plans, which he presented to Volkswagen's supervisory board.

Sources familiar with the matter said labor representatives on the committee blocked the proposals, which reportedly included job reductions and possible closures of four factories.

Blume said Volkswagen could not yet confirm whether the plants in Emden, Hanover, Zwickau, and Neckarsulm would have competitive roles in the 2030s.

He said the company preferred "intelligent solutions" rather than shutting down factories, pointing to possible alternatives such as defense industry production or manufacturing Chinese Volkswagen models in Europe to utilize facilities with excess capacity.

Volkswagen did not mention job cuts or factory closures in its statement following discussions with key stakeholders. Instead, the company announced plans to further reduce production capacity and gradually cut its extensive model lineup.

Analysts said the measures may not be enough to fully address the automaker's current challenges.

Blume acknowledged that some details of the restructuring plan still need further discussion and evaluation.

"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.

"There will certainly be more meetings in which we will work hard to find the best solutions." -Reporting by Rachel More. Editing by Matthias Williams and Mark Potter/Reuters