Volkswagen CEO says company may consider additional 50,000 job cuts

Volkswagen AG is reviewing the need for an additional 50,000 job reductions after earlier announcing a 50,000-job cut programme that includes its Porsche and Audi brands. In an internal memo reviewed by Reuters, CEO Oliver Blume said the automaker faces a 20% cost disadvantage compared with competitors, prompting a "theoretical deduction" of further positions across its global operations.

Blume wrote that the company is "currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible." He added that the firm prefers "intelligent solutions" rather than closing facilities, and has previously suggested repurposing underused plants for defence work or for producing Chinese-market models in Europe.

The memo noted uncertainty about the future use of plants in Emden, Hanover, Zwickau and Neckarsulm beyond 2030. Labor representatives have asked for clarification on the restructuring plans, which were presented to Volkswagen’s supervisory board. The company’s statement after a stakeholder meeting focused on reducing production capacity and halving its model lineup, without detailing specific job cuts or plant closures.

"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 told employees, adding that more meetings will be held to seek the best solutions.