Volkswagen may have to cut another 50,000 jobs worldwide to remain competitive with its rivals, Chief Executive Oliver Blume has reportedly told employees.
The warning effectively confirms for the first time that Europe’s largest carmaker could eliminate as many as 100,000 positions as part of a major restructuring plan.
Volkswagen has already agreed to cut around 50,000 jobs across the group, including at its Porsche and Audi subsidiaries.
However, Blume said further cost reductions may be necessary after the company found that its operating costs were around 20 per cent higher than those of comparable automakers.
This cost disadvantage could theoretically require the elimination of another 50,000 jobs globally, according to an internal memo.
“We are currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible,” Blume said.
Volkswagen is facing several challenges, including falling profits, billions of euros in tariff-related costs, intense competition in China and pressure to improve the efficiency of its German manufacturing network.
The company had earlier refused to comment on reports that it was considering cutting up to 100,000 jobs.
The internal communication followed angry demands from workers seeking clarity about the company’s restructuring plans.
Labour representatives on Volkswagen’s supervisory board reportedly blocked proposals that included further job cuts and the possible closure of four factories.
Blume said the company had still not identified competitive long-term plans for its plants in Emden, Hanover, Zwickau and Neckarsulm beyond 2030.
However, he said he preferred “intelligent solutions” rather than factory closures.
Possible options include using underutilised plants for defence production or manufacturing Chinese Volkswagen models in Europe.
