Volkswagen may have to cut about 50,000 additional jobs to remain competitive in an increasingly challenging automotive market. This emerges from an internal note by CEO Oliver Blume, which effectively confirms for the first time the path towards an overall reduction of up to 100,000 positions. The decision, according to the document cited by Reuters, comes in a context where the company’s profits have collapsed. Among the factors mentioned are tariff costs accumulated in billions of euros, growing competition especially from China, and the need to make the production network in Germany more efficient.
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Volkswagen confirms staff cuts
Blume is therefore trying to rationalize the group, which remains the largest European car manufacturer. After already agreeing on cuts for 50,000 workers across the entire company perimeter, including brands like Porsche and Audi, the group is considering further measures to reduce costs. The message to employees states that the company calculates a 20% cost disadvantage compared to comparable competitors: from this would derive a “theoretical deduction” of about 50,000 additional jobs globally.
Plant closures blocked?
The note comes after the company refused to comment on rumors of cuts up to 100,000 layoffs and after worker protests, which came with harsh tones and requests for clarifications from management. According to reports, union representatives within the committee have blocked proposals that included both cuts and the possible closure of four plants (Emden, Hannover, Zwickau, and Neckarsulm). Blume, in the document, stated that he cannot yet confirm the feasibility of a “competitive” use of those plants in the years after 2030, adding that he prefers smart solutions over closures. In the message to employees, he then concluded that “there will definitely be more meetings” to identify the best options.
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