Volkswagen Considers Reducing an Additional 50,000 Jobs

Volkswagen is considering the possibility of reducing approximately 50,000 additional jobs worldwide. This was announced by the company's Chief Executive Officer, Oliver Blume, in an internal memorandum sent to employees.

The new reductions will be added to the already agreed-upon elimination of 50,000 jobs, which includes employees of both Volkswagen and its subsidiary brands - Porsche and Audi.

According to Blume, based on the company's analysis, Volkswagen has a 20% cost disadvantage compared to competing automakers, which made additional optimization necessary. He stated that this gap theoretically corresponds to further reduction of up to 50,000 positions, though a final decision has not yet been made.

"We are currently assessing across all brands, companies, and regions how necessary and realistic it is to implement additional changes," the memorandum states.

Last week, Volkswagen also announced that as part of its restructuring, it plans to reduce the number of models by approximately half and optimize production capacity. The company states that the decision is related to intensified competition in the Chinese market and the growing influence of Chinese automakers in Europe.

According to Volkswagen, administrative costs were reduced by 1 billion euros in the first quarter of this year, but the company believes that additional measures are needed to further reduce costs. These include reducing production costs, optimizing administrative expenses, and accelerating the pace of technological development.