Volkswagen Group CEO Projects 50,000 More Global Job Cuts in Internal Staff Memo: Report

The Volkswagen Group could eliminate approximately 50,000 more positions worldwide as part of an aggressive restructuring drive to lower its overhead costs, Chief Executive Oliver Blume informed employees in an internal staff memo.

This internal memo, uncovered by Reuters, marks the first official confirmation from corporate leadership that total global job losses could reach up to 100,000 positions. The aggressive push for efficiency follows a series of operational setbacks for the German conglomerate, including decelerating sales volumes, intense market pressure in China, rising regulatory tariff expenses, and high domestic manufacturing costs.

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The potential workforce reductions represent a theoretical deduction calculated by management to eliminate a widening profitability gap between Europe's largest automotive manufacturer and its direct market competitors. The newly disclosed figures come on top of a previously authorised plan to shed 50,000 jobs across the broader group ecosystem, which includes high-volume business units as well as its luxury subsidiaries Porsche and Audi.

According to the internal document, internal audits revealed that Volkswagen is suffering from a 20% cost disadvantage compared to peer manufacturers. This disparity has forced the company's executive team to search for further overhead reductions to preserve global pricing power and long-term financial viability.