Volkswagen may cut 50,000 more jobs, CEO tells staff

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.

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.

The group has already agreed to 50,000 job losses, including at its Porsche and Audi divisions.

In the memo, Blume said the company had identified a 20% cost disadvantage relative to peer firms, necessitating additional cuts.

This translates into a "theoretical deduction" of another 50,000 positions globally, the memo stated.

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

VW had earlier declined to comment on reports suggesting job losses could total as many as 100,000.

The memo comes after workers pressed management to clarify its restructuring plans, which Blume outlined to the supervisory board on Thursday (9 July).

Sources said labour representatives on the board rejected the proposals, which reportedly included job cuts and the possible closure of four plants.

"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.

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.

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.

"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.

Last month, VW agreed to sell Everllence – its heavy duty diesel engine unit – to private capital firm Bain Capital.

Several private equity firms were also in the running (including Blackstone), with VW seeking to free up cash as it embarks on further cost cuts.

Under the exclusive arrangement with Bain, the VW Group is to sell 51% of its shares in Everllence, and plans to remain a major shareholder with a 49% stake in the medium term.

"Volkswagen may cut 50,000 more jobs, CEO tells staff" was originally created and published by Just Auto, a GlobalData owned brand.