Volkswagen’s chief told employees on Monday that another 50,000 jobs could go to the struggling auto giant, according to an internal memo seen by AFP, confirming reports that the group is targeting 100,000 layoffs worldwide.
“The next step is to bring our costs down to a competitive level,” said Chief Executive Oliver Blume.
“Since half of our overheads are derived from staff costs, a theoretical calculation – assuming no change in labor costs – would result in the loss of around 50,000 jobs.”
That comes on top of the 50,000 jobs the 10-brand automaker is already cutting in Germany under a 2024 deal with unions.
The powerful IG Metall union staged protests at Volkswagen sites last week after reports emerged of VW’s plans to increase its job cuts as well as potentially close four German plants.
In the memo, Blume said he wanted to emphasize that “smart solutions” were better than closing plants, but added that the future of the four countries could not be guaranteed.
“The truth is also that, as things stand today, we cannot confirm that the Emden, Hanover, Zwickau and Neckarsulm plants will be able to operate competitively until the 2030s,” he said.
Europe’s biggest carmaker is under heavy pressure from US tariffs, smaller profit margins on electric cars and, above all, intense competition in China, the world’s biggest car market.
The management of the group, which in addition to its name also includes SEAT, Audi and Porsche cars, last Thursday tried to overturn its cost-cutting plans with VW’s supervisory board.
Any restructuring is likely to be difficult.
Labor representatives and the German state of Lower Saxony, both of which take a dim view of factory closures, together hold more than half the seats on the supervisory board.
Unions had slammed Volkswagen and Blume for upsetting employees by allowing media reports of massive job cuts to circulate without comment, demanding that the CEO take a public stand.
