According to news in the German press, Volkswagen CEO Oliver Blume sent an internal memo to employees.

 

The memo highlighted that the company's costs in administrative, infrastructure, and support units were approximately 20 percent above the average of similar car manufacturers.

 

It was stated that if no changes were made to labor costs, additional job reductions would be necessary to close this gap. The memo noted that an assessment was being made of which adjustments were necessary and feasible across all brands, companies, and regions, and that a final decision had not yet been made.

 

The memo stated, "Since personnel expenses constitute half of overheads, a theoretical calculation assuming no change in labor costs would mean a reduction of approximately 50,000 positions worldwide."

 

The memo recalled that Volkswagen could reduce its production capacity in Europe by 500,000 vehicles to adapt to declining demand, and stated that the group could cease production at 4 factories in Germany.

 

The memo recalled that despite better products, there were difficulties competing with models from China in terms of cost and price.

 

The Volkswagen Group had previously announced a plan to reduce employment by approximately 50,000 people across its various brands, including Audi and Porsche, by 2030.

 

If the potential new downsizing is implemented, the total number of layoffs will reach 100,000.