Volkswagen CEO says 50,000 more job cuts may be needed to close competitive gap
The potential cuts would add to 50,000 jobs already slated for elimination as Volkswagen tries to close a 20% cost gap with rivals.
- Volkswagen CEO Oliver Blume confirmed in an internal memo that the automaker may cut 50,000 additional jobs, bringing potential total reductions to 100,000 positions worldwide.
- Profits for Europe's biggest carmaker have slumped due to billions of euros in tariff costs and stiff competition in China, with Blume calculating a 20% cost disadvantage versus comparable companies.
- On Thursday, Blume presented restructuring plans to the supervisory board in Wolfsburg, which included the possible closure of four factories following angry calls from workers.
- Labor representatives on the committee blocked the proposals during the meeting, though Blume said he prefers "intelligent solutions" to closures for underutilized factories.
- Volkswagen cannot yet confirm competitive use cases for plants in Emden, Hanover, Zwickau, and Neckarsulm in the 2030s as Blume assesses what adjustments are "actually necessary and feasible.
138 Articles
138 Articles
The Director General confirmed that the company was considering further reductions, with a total of 100,000 dismissals.
Volkswagen is Fighting Rising Costs and Global Competition. Its CEO Says 100,000 People Could Be Laid Off To Reorganize
Volkswagen CEO Oliver Blume has warned employees that the German automotive giant may need to eliminate roughly 50,000 additional jobs on top of previously announced workforce reductions.
Volkswagen is facing a massive conversion: the car maker must save, reduce production and plans to cut down up to 50,000 jobs. And: A traffic control with an unusual outcome: instead of a ticket, there was apparently a private contact and that's exactly what a Graz police officer is bringing to justice. You can see that and more in the news on Monday 13 July, with Stefana Madjarov.
The group's CEO mentions the figures for the first time in an internal communication, according to the weekly magazine 'Der Spiegel'.
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