Volkswagen has announced plans to lay off another 50,000 employees to cut costs

Volkswagen, Europe’s largest automaker, which also owns the Porsche and Audi brands, may cut another 50,000 jobs—in addition to the previously agreed-upon plan to reduce 50,000 positions across the group— — in order to cut costs. The company’s CEO, Oliver Blume, informed employees of this in an internal memo, the text of which was reviewed by Reuters. Bloomberg also reported on these plans by the automaker’s CEO, citing an internal interview with Blume that was circulated to Volkswagen employees.

In doing so, the automaker’s CEO effectively confirmed for the first time that the company is considering cutting up to 100,000 positions, Reuters notes. At the end of June, *Manager Magazin* reported on this, citing sources.

After Volkswagen agreed to cut 50,000 jobs across the entire group—including at Audi and Porsche—by 2030, the automaker needs to continue working to further reduce costs, Blum said—according to him, Volkswagen “lags behind by 20%” compared to similar companies in terms of cost levels, Reuters reports. Achieving parity would entail a “theoretical reduction” of another 50,000 positions within the automotive group worldwide, in addition to the program already agreed upon, the letter notes.

"We are currently assessing, across all brands, companies, and regions, how many adjustments are truly necessary and feasible," added the company's CEO.

Previously, the automaker had declined to comment on reports that it was considering cutting up to 100,000 jobs. On June 26, *Manager Magazin* reported this, citing sources. As part of its updated restructuring program—aimed at boosting its competitiveness—Volkswagen, according to the publication’s sources, was also considering the possibility of closing some plants.

Volkswagen shares rose 1% during trading in Germany on July 13—overall, they have been trading at levels last seen in the summer of 2010 in recent weeks. Since the beginning of this year, Volkswagen shares have lost more than 30%.

Blum’s letter came in the wake of demands from employees, who called on the automaker’s management to clarify the restructuring plans presented by Volkswagen’s CEO to the supervisory board on July 9. The automaker stated at the time that the company’s model lineup would be gradually reduced in the coming years—and would ultimately be cut nearly in half. The company also plans to reduce production capacity and focus on the most attractive market segments.

As a result, Volkswagen union representatives on the supervisory board blocked these proposals, according to Reuters sources. Among other things, they said, these initiatives also included job cuts and the possible closure of four Volkswagen plants.

Blum is actively working to streamline the company’s structure, as its profits have fallen significantly in recent times due to multibillion-dollar tariff-related costs and competition in the Chinese market. However, previous attempts to streamline operations at Volkswagen have often faced resistance from union leaders, who, together with regional politicians, hold a blocking majority on the supervisory board, Bloomberg notes.

In addition, Volkswagen reported on July 10 that it had recorded a drop in sales of approximately 20% in China during the second quarter of 2026 amid the continuing deterioration of market conditions, which offset some of the operational successes in other regions. Total vehicle deliveries in the past quarter fell by 8.6% year-over-year to 2.08 million units. The main negative factor was a 37% decline in sales in China.

This article was AI-translated and verified by a human editor