Oliver Blume, CEO of the Volkswagen Group (VW), does not rule out further layoffs of 50,000 people as part of an aim to reduce the company’s costs.
In an interview published on the company’s internal network, Blume stated that VW’s headcount is approximately 20% higher than that of its competitors—too many. To reduce the workforce to the level of its rivals, he believes around 50,000 jobs must be eliminated, on top of the cuts already outlined in the cost-reduction plan launched in 2024.
According to the Guardian, the company aims to reduce its vehicle range by about 50%, and the automaker also plans to optimize its production capacity to align with the changing market environment and sharply increased competition.
VW plans to reduce its capacities in China and Europe also. Blume stated
We are currently evaluating across every brand, company, and region the actual extent of the necessary adjustments and which ones are feasible.
Volkswagen‘s plans include ending production at the factories in Hannover, Zwickau, and Emden, as well as at Audi’s Neckarsulm plant, between 2031 and 2034, although these plans are not yet final, with Blume saying in the interview “there is still a question mark” over the four factories.
In the past couple of years, VW has already reduced its production by 2 million, with another 500,000 units to be cut from production in China, where the automaker is facing huge pressure from local competition too.
