Volkswagen Group Internal Memo Reportedly Calls For Doubling Layoffs

The Volkswagen Group, which has already announced plans to cut 50,000 jobs, may be considering doubling that figure to 100,000, according to an internal memo seen by Reuters. CEO Oliver Blume has stated that the company’s costs are 20% higher than those of its rivals, and the group is taking measures to cut expenditures, including eliminating as many as half of its models and slashing the number of options by 75 percent. The company is also relocating its Golf production to Mexico from 2027 and reducing annual vehicle production by one million. However, the memo warns of a ‘theoretical deduction’ of 50,000 additional jobs across the group, and the company is considering closing as many as four factories in Germany, including the plants in Emden, Hanover, Zwickau, and Neckarsulm. The company is exploring alternative options, such as assembling Chinese cars at the underutilized plants or finding a partner in the defense industry. The situation is dire, but the company remains a force to be reckoned with in Europe, and has seen growth in South America. However, demand in China has fallen by 25.9 percent in the first six months of 2026, and the company is facing significant challenges in the region.