VW CEO: Up to 50,000 Jobs Could Be at Risk Amid Cost-Cutting Drive

Volkswagen Group CEO Oliver Blume has for the first time quantified the potential impact of cost-cutting measures, suggesting that as many as 50,000 jobs globally could be affected. This figure emerged from an internal interview, as reported by the German Press Agency.

Blume explained that the projected job losses stem from the company's strategic goal to lower expenses related to administration, infrastructure, and core business support. Currently, Volkswagen's expenditures in these non-production areas are approximately 20% higher than those of similar companies in the automotive sector. This disparity necessitates significant adjustments to align with industry benchmarks.

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This means that a theoretical derivation without changing labor costs would result in around 50,000 jobs worldwide.

The exact number of positions to be eliminated is still under assessment, with evaluations underway across all brands, subsidiaries, and regions. Blume noted that personnel costs encompass not only the number of employees but also their overall compensation and benefits. "We must also pull this lever," he stated, indicating that reductions in labor costs are a necessary component of the broader efficiency drive. The company aims to achieve a competitive cost structure to ensure its long-term viability in a rapidly evolving automotive market.

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We must also pull this lever.