Volkswagen is considering cutting an additional 50,000 jobs worldwide as part of a sweeping restructuring plan aimed at improving competitiveness, according to an internal memo from CEO Oliver Blume seen by Reuters.
If implemented, the latest reductions would bring the German automaker’s total planned workforce cuts to around 100,000 positions, including the 50,000 job reductions already agreed across the Volkswagen Group and its luxury brands, Porsche and Audi.
Blume told employees that Volkswagen faces a 20% cost disadvantage compared with rival automakers, making further efficiency measures necessary as the company grapples with slowing profits, rising production costs, billions of euros in tariff-related expenses, and intense competition from Chinese electric vehicle manufacturers.
“We are currently assessing across all brands, companies, and regions how many adjustments are actually necessary and feasible,” Blume said in the memo.
The restructuring proposals were presented to Volkswagen’s supervisory board last week, but labour representatives reportedly opposed the plans, which include possible job cuts and the potential closure of four German factories.
According to the memo, Volkswagen has yet to identify long-term production plans for its plants in Emden, Hanover, Zwickau, and Neckarsulm beyond the 2030s. However, Blume said he preferred finding “intelligent solutions” over shutting factories, including repurposing facilities for defence manufacturing or producing Chinese Volkswagen models in Europe.
Following the board meeting, Volkswagen announced plans to reduce production capacity and gradually halve its vehicle lineup, though analysts said the measures may not be enough to restore the company’s competitiveness.
Volkswagen has been under increasing pressure as European demand weakens, Chinese EV makers rapidly expand their global footprint, and the company accelerates its costly transition to electric vehicles while protecting profitability.