Volkswagen CEO Warns of 50,000 More Job Cuts Amid Rising Costs

Volkswagen may need to eliminate around 50,000 additional jobs to remain competitive in an increasingly tough auto market, according to an internal memo from CEO Oliver Blume. The message effectively confirms for the first time that Europe’s largest carmaker is weighing cuts to as many as 100,000 positions in total, a figure the company had previously declined to address publicly.

Cost Gap With Rivals Drives Restructuring Push

Blume is working to streamline operations at Volkswagen as profits have taken a hit from steep tariff costs, tough competition in China, and pressure to make its German factories more efficient. The company had already agreed to cut 50,000 jobs across its group, including at Porsche and Audi. Now, after calculating a 20% cost disadvantage compared to similar companies, Blume said another 50,000 positions worldwide could face what he called a “theoretical deduction.”

Labour Representatives Push Back on Plan

The memo follows growing frustration among workers demanding clarity on the company’s restructuring direction. Blume had presented his plans to Volkswagen’s supervisory board last week, but sources say labour representatives on the board rejected the proposal, which reportedly included job cuts and the possible shutdown of four factories.

CEO Favors Alternatives Over Plant Closures

Rather than closing factories outright, Blume said he prefers what he called “intelligent solutions,” pointing to ideas like shifting underused plants toward defense production or manufacturing Chinese Volkswagen models in Europe. In its official statement after last week’s talks, Volkswagen avoided mentioning job cuts or closures directly, instead announcing plans to scale back production capacity and gradually cut its model lineup roughly in half.

Analysts have said these steps fall short of resolving the company’s broader financial pressures. Blume noted that further discussions with stakeholders are expected as the company works through remaining details.