Volkswagen may cut 50,000 more jobs, CEO tells staff

Volkswagen (VW) CEO Oliver Blume has warned unit that a further 50,000 jobs could beryllium axed, the archetypal interior acknowledgement that full cuts whitethorn scope 100,000, Reuters reported, citing an interior memo.

Blume is pushing to trim costs astatine the company, which has seen profits diminution owed to tariff-related expenses, increasing contention successful China and the request for greater ratio crossed its German manufacturing base.

The radical has already agreed to 50,000 occupation losses, including astatine its Porsche and Audi divisions.

In the memo, Blume said the institution had identified a 20% outgo disadvantage comparative to adjacent firms, necessitating further cuts.

This translates into a "theoretical deduction" of different 50,000 positions globally, the memo stated.

"We are presently assessing crossed each brands, companies and regions however galore adjustments are really indispensable and feasible", Blume wrote.

VW had earlier declined to remark connected reports suggesting occupation losses could full arsenic galore arsenic 100,000.

The memo comes aft workers pressed absorption to clarify its restructuring plans, which Blume outlined to the supervisory committee connected Thursday (9 July).

Sources said labour representatives connected the committee rejected the proposals, which reportedly included occupation cuts and the imaginable closure of 4 plants.

"As of today, we inactive cannot corroborate competitory usage cases for the plants of Emden, Hanover, Zwickau and Neckarsulm successful the 2030s", Blume said successful the memo.

He indicated a penchant for "intelligent solutions" implicit closures, having earlier pointed to defence assemblage enactment oregon the accumulation of Chinese VW models successful Europe arsenic imaginable uses for underutilised sites.

VW's authoritative connection pursuing Thursday's discussions did not notation occupation cuts oregon mill closures, focusing alternatively connected plans to further trim accumulation capableness and gradually chopped its exemplary scope by half.

"Of course, it's understandable that not everything has been planned retired down to the past item yet, and that definite issues inactive request to beryllium further discussed and evaluated," Blume said.

Last month, VW agreed to merchantability Everllence – its dense work diesel motor portion – to backstage superior steadfast Bain Capital.

Several backstage equity firms were besides successful the moving (including Blackstone), with VW seeking to escaped up currency arsenic it embarks connected further outgo cuts.

Under the exclusive statement with Bain, the VW Group is to merchantability 51% of its shares successful Everllence, and plans to stay a large shareholder with a 49% involvement successful the mean term.

"Volkswagen whitethorn chopped 50,000 much jobs, CEO tells staff" was primitively created and published by Just Auto, a GlobalData owned brand.