Volkswagen is weighing the possibility of adding up to 100,000 more job cuts as part of its ongoing restructuring, according to an internal memo circulated to staff and reviewed by Reuters. The German automaker had previously signaled plans to reduce about 50,000 roles across the group, including positions at Porsche and Audi, and the memo from CEO Oliver Blume argues that Volkswagen remains at a material cost disadvantage versus its rivals. In the document, executives describe a path that could entail a further 50,000 reductions on top of the initial target, effectively signaling the potential for a total of up to 100,000 job cuts across the worldwide footprint if necessary to restore competitiveness across brands, regions, and company units.
The memo notes that the company is evaluating across all brands, companies and regions how many adjustments are actually necessary and feasible. Blume stresses a preference for intelligent solutions over plant closures, and notes that underutilized factories could be repurposed for defense needs or to manufacture Chinese Volkswagen models in Europe. He also reveals a long-term view, acknowledging that looking into the next decade the company cannot yet confirm competitive use cases for plants in Emden, Hanover, Zwickau and Neckarsulm in the 2030s.
Volkswagen is Europe’s largest automaker, but profits have come under pressure from higher tariff costs, tough competition in the Chinese market, and a German manufacturing network that is being pushed to run more efficiently. The operating environment for the group has been complicated by the broader push to trim capacity and streamline its model lineup. Blume’s message to workers emphasizes that the company will continue to refine plans and pursue agreements with labor representatives and other stakeholders as discussions proceed.
In parallel, Reuters reported that labor representatives on the works council reportedly blocked proposals that would have included additional job cuts and the possible closure of four factories, underscoring the contentious nature of the restructuring discussions. Volkswagen, for its part, said that after meetings with stakeholders it would focus on reducing production capacity and gradually halving its model lineup, rather than making swift, sweeping plant closures. Blume’s note ends with a call for ongoing discussions and a commitment to finding the best solutions, as officials prepare for further meetings on the path ahead.
