German automotive giant Volkswagen is considering cutting around 50,000 additional jobs worldwide as it seeks to reduce costs and remain competitive in an increasingly challenging global market. The move comes after the company had already agreed to eliminate nearly 50,000 positions across its group, raising the total potential job reductions to 100,000.

CEO warns of growing cost disadvantage

According to an internal memo seen by Reuters, Volkswagen CEO Oliver Blume told employees that the company faces a 20 per cent cost disadvantage compared with its competitors. He said the carmaker is assessing how many further workforce reductions would be necessary across its brands, subsidiaries and global operations.

Volkswagen has been under pressure from falling profits, rising tariff costs, intense competition in the Chinese market and the need to improve efficiency across its German manufacturing network.

Plant closures under discussion

The restructuring proposals reportedly include the possibility of closing four manufacturing plants in Emden, Hanover, Zwickau and Neckarsulm. However, labour representatives have opposed the plans, urging management to provide greater clarity on the company’s future strategy.

Blume said he would prefer “intelligent solutions” over factory closures. He suggested alternative uses for underutilised plants, including supporting the defence industry or manufacturing Volkswagen’s Chinese models in Europe.

Restructuring to secure long-term future

Following recent discussions with key stakeholders, Volkswagen announced plans to further reduce production capacity and gradually halve its extensive range of vehicle models. While analysts welcomed the company’s efforts to improve efficiency, many believe the announced measures alone may not be enough to address the automaker’s long-term challenges.

The company said discussions on the restructuring plan are ongoing, with final decisions yet to be made. Investors and employees are expected to closely monitor the outcome as Volkswagen navigates one of the most significant transformations in its history