Volkswagen CEO Oliver Blume told staff in a July 13 memo that the group’s remaining cost disadvantage of about 20% versus comparable companies translates mathematically into roughly 50,000 additional job cuts on top of about 50,000 reductions already agreed across Volkswagen, Audi and Porsche. He said the figure was a theoretical benchmark rather than a finalized operational plan, and that management is assessing what measures are necessary and feasible by brand, company and region.
The memo cited lower profit, tariff-related costs, competition in China and efficiency pressure in the German manufacturing network. It said management was examining restructuring options with a preference for measures other than immediate plant closures.
Reuters has reported that Volkswagen’s broader restructuring discussions have included reducing model and variant complexity, lowering annual production capacity to about 9 million vehicles from about 10 million, reviewing possible action at German sites including Hanover, Emden, Zwickau and Audi’s Neckarsulm plant, and seeking alternative uses for underused assets.
Volkswagen’s existing programs already include more than 35,000 workforce reductions at German Volkswagen brand sites by 2030 through attrition, early retirement, severance and lower hiring, while unions and the works council have said they oppose plant closures.