In an internal memo to employees, Volkswagen Group Chairman of the Board of Management, Oliver Blume, stated that in order to narrow the cost gap with competitors, the group may cut about 50,000 jobs worldwide.
Blume said in the memo that the number of layoffs is estimated based on Volkswagen Group's cost reduction plan. Currently, the group's operating costs are about 20% higher than the industry average. The group is conducting an evaluation and will announce relevant information after a decision has been made.
Blume pointed out that in the past year, costs at Volkswagen's German factories have decreased by 20%, indicating that reforms are moving in the right direction. Meanwhile, the group is also exploring other alternative plans to safeguard as many jobs as possible.
In March of this year, Volkswagen Group already announced plans to cut about 50,000 jobs in Germany by 2030.