The German automaker previously announced plans to cut 50,000 jobs across the company, including at its subsidiaries Porsche and Audi, and CEO Oliver Blume said in a memo reviewed by Reuters that further cuts are needed because Volkswagen is operating at a 20% cost disadvantage relative to its competitors.<\/p>\n
The memo said that situation means a “theoretical deduction” of another 50,000 jobs<\/a> across the company’s worldwide footprint, effectively confirming prior reports that Volkswagen was weighing up to 100,000 job reductions.<\/p>\n “We are currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible,” Blume said in the memo, according to Reuters.<\/p>\n VOLKSWAGEN RECALLS NEARLY 50,000 VEHICLES OVER SERIOUS ENGINE FIRE RISK FROM FAULTY WIRING<\/a><\/p>\n Volkswagen is weighing an additional 50,000 job cuts on top of the previously announced layoffs of 50,000 workers amid a restructuring effort. (Elijah Nouvelage\/Getty Images)<\/p>\n Volkswagen is Europe’s largest automaker but has seen its profits slump amid higher tariff costs, tough competition in the Chinese market<\/a> and pressure on its German manufacturing network to become more efficient.<\/p>\n Blume said in the memo that he prefers “intelligent solutions” over the closure of facilities, and previously suggested that underutilized factories<\/a> could be used for the defense industry or to produce Chinese Volkswagen models in Europe.<\/p>\n UBER PARTNERS WITH CHINESE TECH GIANT TO ROLL OUT DRIVERLESS VEHICLES ACROSS MULTIPLE GLOBAL MARKETS<\/a><\/p>\n Ticker Security Last Change Change % VWAGY<\/a> VOLKSWAGEN AG 8.23 +0.02 He said in the memo that looking into the next decade, the company “still cannot confirm competitive use cases for the plants of Emden, Hanover, Zwickau and Neckarsulm in the 2030s.”<\/p>\n The company’s leaders have faced angry calls from workers for the automaker’s management to explain its restructuring plans, which Blume presented to a supervisory board on Thursday.<\/p>\n POLESTAR BANNED FROM US MARKET UNDER RULE TARGETING CHINA-LINKED CONNECTED VEHICLES<\/a><\/p>\n Volkswagen is looking to halve its lineup of models amid a push to restructure more efficiently. (Eva Marie Uzcategui\/Bloomberg via Getty Images)<\/p>\n Reuters reported that sources familiar with the matter said labor representatives<\/a> on the committee blocked proposals that were said to include job cuts and the possible closure of four factories.<\/p>\n Volkswagen’s statement after the meeting with stakeholders didn’t discuss job cuts or plant closures and instead announced plans to further reduce production capacity and gradually halve its lineup of models<\/a>.<\/p>\n![\"Volkswagen's](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/07\/volkswagen-cars-plant-tennessee-01.jpg\")
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