Volkswagen CEO confirms up to 50,000 more jobs could be cut

Volkswagen CEO Oliver Blume has told employees that the German automaker may need to eliminate as many as 50,000 additional jobs worldwide if it fails to reduce overhead costs that remain far above those of its competitors, media reported on Monday.

In an internal interview posted on the company’s intranet, Blume said administrative as well as support functions at Volkswagen are still roughly 20% more expensive than at comparable automakers, German weekly Der Spiegel reported. He warned that failure to close that gap could theoretically lead to the steep additional cuts, though he noted the final number could be lower if other labor-cost reductions are achieved.

The warning comes on top of an existing plan to cut about 50,000 jobs across Volkswagen, Audi and other group brands by 2030. Blume said the company is “well on track” with that target and expects to have achieved more than half the reductions by the end of this year.

Volkswagen, Europe’s largest carmaker, has been grappling in recent years with sluggish demand, persistently high production costs in Germany, the negative impact of trade tensions with the U.S., and fierce competition from Chinese electric-vehicle makers.

Der Spiegel reported last week that the company intends to end vehicle production at four German factories, shuttering production at the Zwickau and Emden factories within five years, followed by the commercial vehicle plant in Hannover in 2032 and Audi’s plant in Neckarsulm in 2034.

The internal disclosures have drawn sharp criticism from labor representatives, who accuse management of leaving workers in uncertainty. Volkswagen works council chief Daniela Cavallo said Blume “has obviously not considered it necessary for weeks” to inform “tens of thousands of completely unsettled, even frightened employees” about the core elements of the restructuring plan.

Last week, the IG Metall union staged protests at several Volkswagen plants and facilities across the country.