Volkswagen CEO Oliver Blume said the company may need to expand its previously announced restructuring plan for 50,000 workers to as many as 100,000, signaling the possibility of an additional 50,000 job cuts.
According to The Wall Street Journal on the 13th, Blume said in an internal notice that "we are reviewing workforce adjustments across brands and regional units under the Volkswagen Group." He added, "It is unclear whether our four German plants in Emden, Hanover, Zwickau, and Neckarsulm will be able to maintain their competitiveness into the 2030s."
Volkswagen has long maintained a business model of developing and producing vehicles in Germany and selling them worldwide. However, the existing strategy now faces significant challenges as rising European production costs, new U.S. tariff policies, and the strengthening technological competitiveness of Chinese automakers converge.
Blume's remarks marked the first time management specifically addressed the impact of the restructuring on workforce and production facilities, following a report to the supervisory board last week on the large-scale restructuring plan. At that time, Volkswagen said it would cut the number of vehicle models sold to about half of current levels and reduce production capacity, but did not disclose a specific implementation plan. Subsequently, some media outlets reported on the possibility of plant closures and large-scale layoffs, raising concerns among labor unions.
This plan is an additional cost-cutting measure being pursued separately from the 50,000 job cuts already agreed with unions at the Volkswagen brand and major affiliates including Audi and Porsche. The WSJ reported that "workforce reductions so far have been carried out mainly through early retirement and voluntary redundancies, so the pace has been slow," adding that "as of the end of last year, Volkswagen's total workforce stood at approximately 660,000, meaning it employs one worker for every 14 vehicles sold."
Blume explained, "Analysis shows that costs in areas supporting core production, such as administration and infrastructure, are about 20% higher than at competitors, requiring cuts of about 50,000 workers." He added, "The group's workforce has grown continuously over decades, and the current level is no longer sustainable."
