Volkswagen Eyes Massive Job Reductions to Boost Competitiveness

Volkswagen CEO Oliver Blume has warned employees of potential job cuts totaling 50,000, necessary for aligning the company with industry cost standards. Previously, the group, including Porsche and Audi, committed to an initial 50,000 cuts. Further assessments across brands and regions will determine the necessary adjustments.

Volkswagen is considering cutting around 50,000 more jobs to align its cost structures with industry competitors, CEO Oliver Blume revealed in an internal memo obtained by Reuters. The carmaker had earlier agreed to eliminate 50,000 positions across its operations, including at Porsche and Audi.

The company discovered a 20% cost disadvantage when compared to similar businesses, prompting this further theoretical reduction, Blume noted. This decision is vital to maintain competitive pricing and profitability.

Volkswagen is currently evaluating the exact number of jobs that need to be cut across all its brands, companies, and regions to make the necessary adjustments feasible, explained Blume in the memo.