Volkswagen is preparing to cut another 50,000 jobs as part of a major effort to strengthen its competitive position. CEO Oliver Blume shared the news with employees in an internal memo reviewed by Reuters, noting that the company’s operating costs remain about 20 percent higher than those of comparable automakers.
Official Confirmation
This new round of reductions follows an earlier cut of 50,000 jobs across the Volkswagen Group, which includes brands such as Porsche and Audi. The memo provides the first official confirmation of German media reports that 100,000 jobs would be eliminated.
Although Volkswagen had considered closing factories as part of the restructuring, that option now appears unlikely. Blume told German newspaper ‘Bild am Sonntag’ that “smarter solutions than closing factories” are available. He further added that cost‑saving measures at German production sites are already beginning to show results.
Reactions
Unions have warned that further job cuts could lead to new strikes. Work stoppages already occurred last week at several factories after reports that four sites were slated for closure.
Volkswagen’s challenges reflect broader pressures across the German automotive sector. The company, which employs roughly 650,000 people worldwide, has been undergoing a wide‑ranging reorganisation while dealing with U.S. import tariffs, weaker sales, and intensifying competition.
German carmakers more broadly have been struggling with lower demand and high energy costs. Thousands of Mercedes‑Benz employees recently protested planned cutbacks, and BMW announced last month that it expects to reduce thousands of jobs this year.
@anp | NEWSBRAINPORT
