Volkswagen faces potential 100,000 total job reductions as CEO cites a 20% cost gap with rivals and declining profits.
Volkswagen CEO Oliver Blume informed staff that an additional 50,000 jobs may be cut, doubling earlier estimates to 100,000. The move aims to address a 20% cost disadvantage compared to competitors, driven by tariff expenses and rising competition in China.
The company has already agreed to 50,000 job losses, including at Porsche and Audi. Blume’s memo highlighted inefficiencies in German manufacturing and questioned the viability of four plants beyond 2030. Labor representatives reportedly rejected the proposals.
Blume emphasized the need for “intelligent solutions” but did not confirm specific plant closures or finalized cuts. The memo follows pressure from workers for clarity on restructuring plans.