Volkswagen is planning to cut another 50,000 jobs globally
What's the story
Volkswagen's CEO Oliver Blume has hinted at the possibility of an additional 50,000 job cuts. The move is aimed at aligning the company's cost structure with its competitors. The decision comes after an earlier agreement to cut 50,000 jobs across the group, including its Porsche as well as Audi subsidiaries.
Cost alignment
Cost disadvantage prompts job cuts
Blume said in his memo that Volkswagen is facing a 20% cost disadvantage compared to similar companies. This has led to the consideration of more job cuts as a way to reduce costs. The CEO described this as "theoretical deduction" of another 50,000 jobs globally.
Global evaluation
Global evaluation of potential job cuts underway
Blume said in his memo, "We are currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible."
This global evaluation highlights Volkswagen's commitment to making necessary changes for cost efficiency.
The company is looking at all its brands and regions to determine the extent of these potential job cuts.