Volkswagen, one of the world's largest automakers, may cut around 100,000 jobs to maintain competitiveness against rivals, according to a report by Reuters referencing an internal memo from the company's CEO Oliver Blume to employees.
The profit of Europe's largest automaker has significantly declined due to billions in costs arising from tariffs and increasing competition from Chinese companies.
Blume stated that although it has already been decided to cut 50,000 jobs within the company, including at its subsidiaries Porsche and Audi, Volkswagen must continue to reduce expenses as its costs are about 20 percent higher than those of other companies in the sector. This could theoretically mean that another 50,000 jobs may be cut worldwide.
“We are currently assessing at the level of all brands, companies, and regions what volume of changes is actually necessary and possible to implement,” Blume noted.
