Oliver Blume said Volkswagen may need as many as 50,000 additional job cuts and is reviewing workforce changes across brands and regions, with the future of four German plants no longer assured.
Volkswagen is escalating its restructuring drive as Chief Executive Oliver Blume said the automaker may need to cut 50,000 more jobs and can no longer guarantee the future of four German plants. In an internal memo published Monday, Blume said Volkswagen is evaluating possible workforce adjustments across its various brands and regional subsidiaries, marking a sharper warning than earlier comments that plant closures might be avoidable. The Wolfsburg, Germany-based company is trying to bring its cost base more in line with other major carmakers as it faces pressure to improve profitability, reduce domestic costs and respond to intensifying competition in China. Earlier, Blume had said Volkswagen's German factory costs fell an average 20% last year and argued there were more intelligent solutions than shutting plants, but the latest memo signals that deeper cuts remain under consideration.