Volkswagen CEO's leaked memo confirms: Up to 100,000 jobs may go at Europe's biggest carmaker
Volkswagen CEO Oliver Blume has confirmed plans to cut up to 100,000 jobs globally to address a 20% cost disadvantage compared to competitors. The company is struggling with high tariff costs, intense competition in China, and inefficiencies within its German manufacturing network.
Why it matters
As Europe's largest automaker, Volkswagen's massive restructuring signals significant distress in the traditional automotive sector amid the transition to new market realities.
Volkswagen has finally said the number out loud. In an internal memo to staff, CEO Oliver Blume flagged roughly 50,000 additional job cuts on top of the 50,000 already agreed across the group—effectively confirming, for the first time, that Europe's biggest car maker is looking at reducing up to 100,000 positions worldwide. The memo was seen by Reuters, which reported its contents on July 13. Until now, Volkswagen had refused to comment on reports of a cut that size.The trigger, according to Blume, is a cost gap the company can no longer explain away. Volkswagen has calculated a cost disadvantage of about 20% versus comparable rivals. Translate that into headcount and you get what the memo calls a "theoretical deduction" of another 50,000 jobs globally.
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