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VW Mulls 50,000 More Layoffs Amid Cost Woes
13 Jul
Summary
- Volkswagen faces a 20% cost disadvantage compared to peers.
- Up to 50,000 additional job cuts are under consideration.
- Four Volkswagen plants are at risk of closure.
Volkswagen's CEO, Oliver Blume, has alerted employees to the possibility of implementing up to 50,000 more layoffs. This consideration stems from the company's identified 20% cost disadvantage when compared to its industry peers. Blume indicated that further cost-cutting measures are essential for competitiveness.
These proposed additional job reductions come after Volkswagen had already reduced its workforce by 50,000 employees across its Porsche and Audi divisions. The CEO described the potential cuts as a "theoretical deduction" that could become a global reality.
Blume also noted that "as of today, we still cannot confirm competitive use cases for the plants of Emden, Hanover, Zwickau and Neckarsulm in the 2030s." Labour representatives previously blocked an initial proposal for 50,000 job cuts and factory closures.
