VW CEO Outlines Up to 50,000 More Job Cuts

Volkswagen CEO Oliver Blume has outlined plans to cut up to 50,000 additional jobs globally as part of a sweeping cost-reduction overhaul. The move reflects the company’s high overhead, which is roughly 20% above its rivals, as well as pressure from weak demand in China and Europe, and tariffs that are hurting luxury brands. The proposal faces labor opposition and uncertain board support as VW reviews plant closures, asset sales, and production plans to improve competitiveness. The company’s overhead is higher than its competitors’ by about one-fifth, and reaching parity would imply a ‘theoretical deduction’ of around 50,000 positions, on top of a similar amount that’s part of a cost-savings effort launched in 2024. Blume stated that the group’s head count has been growing for decades to a level that’s no longer viable today, due to changes in markets and negative effects outside of the company’s control. VW has come under renewed pressure to make cuts, with a worsening business outlook, and the plan includes the possible closure of four plants in Germany, which has met labor opposition and failed to win initial board backing. The company is grappling with challenges such as a slump in sales in China, US tariffs hurting profit at the Audi and Porsche luxury brands, and a sluggish European market, which have moved its high costs and underused factories into focus. Blume said that the company’s business model of developing and exporting cars from Germany isn’t viable anymore, and VW plans to examine which parts of its portfolio contribute to its core automotive business and returns.