KATHMANDU: Volkswagen Group is considering cutting up to 50,000 additional jobs worldwide as part of a broader restructuring plan to improve efficiency and reduce costs, according to global media reports.
In an internal memo to employees, Volkswagen CEO Oliver Blume said the company must act quickly to remain competitive. He noted that the group’s operating costs are around 20% higher than those of its rivals, with staff expenses accounting for nearly half of its overheads.
Blume said that, if labor costs remain unchanged, a theoretical calculation would require the elimination of around 50,000 more jobs. This would be in addition to the 50,000 positions already being reduced, including about 35,000 jobs at the Volkswagen passenger car brand under a 2024 agreement with labor unions.
If implemented, the total reduction of 100,000 jobs would mark the largest workforce restructuring in the history of the global automotive industry.
The company is also reviewing the future of four German factories. Volkswagen has been under growing pressure from higher US tariffs, shrinking profit margins on electric vehicles and intense competition from Chinese automakers, both in China and increasingly in Europe.
The proposed cuts have drawn strong opposition from IG Metall, Germany’s largest industrial union. Workers staged protests at Volkswagen facilities last week after reports of the planned restructuring emerged.
Union representatives criticized the company’s communication with employees, saying management has failed to provide clear information about the restructuring plans. Negotiations between Volkswagen’s management and labor representatives are expected to continue in the coming months.
