VW faces extra job cuts
Volkswagen Group’s chief executive officer has confirmed it is considering cutting up to 100,000 jobs, double the number previously announced.
After earlier stating 50,000 roles are set to go in Germany by 2030, a memo to staff from Oliver Blume says further cost-cutting may result in the loss of a further 50,000 jobs worldwide.
Profits at the group, which includes Audi, Porsche, Seat, Skoda and Volkswagen, have tumbled in recent times amid falling sales in key markets and increasing competition from Chinese brands, reports the BBC.
Blume has now told staff in an internal memo more savings are needed because the company’s costs are 20 per cent higher than those of rival businesses.
“We are currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible,” he says.
Four of the group’s plants in Germany are also at risk of closure, with Blume adding it “cannot confirm competitive use cases” for sites in Emden, Hanover, Zwickau and Neckarsulm.
Last week, the company also announced plans to reduce production capacity and halve its line-up of models, reports Reuters.
