Volkswagen job cuts could reach 100,000 worldwide after Chief Executive Officer Oliver Blume told staff that another 50,000 roles may be needed to close the group’s cost gap with rivals.
Volkswagen AG (Xetra: VOW3) calculated that its costs were about 20% higher than those of comparable companies, according to an internal memo seen by Reuters on July 13.
The German automaker had already agreed on plans to cut about 50,000 positions across the group, including reductions at its Audi and Porsche subsidiaries. The additional 50,000 figure remains a theoretical estimate rather than a final target.
Blume said Volkswagen was assessing each brand, company and region to determine how many further adjustments were necessary and achievable.
Labour representatives on Volkswagen’s Supervisory Board blocked restructuring proposals presented on Thursday, July 9, according to Reuters. The plans included further job reductions and possible closures of four German factories.
Blume told employees that Volkswagen had not yet identified competitive long-term uses for its Emden, Hanover and Zwickau plants or Audi’s Neckarsulm factory during the 2030s. He said the company preferred alternatives to closures.
Volkswagen’s official future plan did not specify additional job cuts or factory closures. It instead proposed reducing annual production capacity to nine million vehicles and gradually cutting the group’s model range by up to 50%.
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The company also plans to reduce the number of product options by as much as 75% as it responds to rising tariffs, excess capacity and stronger competition from Chinese automakers.
Blume said further meetings would be required before Volkswagen finalised the restructuring measures.
