Volkswagen may need to cut about 50,000 extra jobs to keep up with rivals in an increasingly fierce car market, its CEO told staff in an internal memo, effectively confirming for the first time that the automaker is looking to reduce up to 100,000 positions globally.
CEO Oliver Blume is battling to streamline Europe’s biggest carmaker, whose profits have slumped as it faces billions of euros in tariff costs, stiff competition in China and pressure on its German manufacturing network to become more efficient.
After already agreeing 50,000 job cuts across the group, including its Porsche (P911_p.DE), opens new tab and Audi subsidiaries, the company must work on reducing costs further, having calculated a cost disadvantage versus comparable companies of 20%, Blume said in the memo seen by Reuters.
This means a “theoretical deduction” of another 50,000 jobs worldwide, the memo said.
“We are currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible,” Blume said in the document.
The company had previously declined to comment on reports it was considering up to 100,000 job losses.
The memo follows angry calls from workers for management to explain its restructuring plans, which Blume presented to the company’s supervisory board on Thursday.