Frankfurt (Germany), 13 July (LaPresse) – The Volkswagen Group could cut up to a further 50,000 jobs worldwide by 2030, in addition to the 50,000 redundancies already planned, as part of its cost-cutting programme. This was revealed by Der Spiegel, citing an internal memo from CEO Oliver Blume published on the company’s intranet. According to the weekly magazine, Blume is said to have provided a concrete estimate of the potential cuts for the first time, explaining that the group’s overheads – administration, infrastructure and support services – remain around 20 per cent higher than those of its main competitors. This difference would result in a “theoretical estimate” of around 50,000 jobs to be cut globally, should no other measures be taken to address labour costs. The manager points out that this figure does not yet represent a definitive target. Volkswagen is in fact assessing, brand by brand and country by country, which measures are actually necessary and feasible. The scale of the cuts could be reduced if other measures to lower labour costs were identified. If confirmed, the new plan would be in addition to the approximately 50,000 redundancies already agreed across the group’s various brands, including Volkswagen and Audi. According to Blume, more than half of these cuts will be completed by the end of the year, bringing the potential total to around 100,000 jobs over the next few years, many of them in Germany. In his statement, the CEO also addresses the future of four German plants – Zwickau, Emden, Hanover and Neckarsulm – which are suffering from excess production capacity. According to Blume, the group’s European plants could produce around 500,000 more vehicles than current demand, and, as things stand, it is not possible to guarantee an economically sustainable level of activity for these sites. The executive nevertheless reiterated his preference for alternatives to plant closures, such as industrial conversion.
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Der Spiegel: ‘Volkswagen CEO considers a further 50,000 job cuts by 2030’
Frankfurt (Germany), 13 July (LaPresse) – The Volkswagen Group could cut up to a further 50,000 jobs worldwide by 2030, in addition to the 50,000 redundancies already planned, as part of its cost-cutting programme. This was revealed by Der Spiegel, citing an internal memo from CEO Oliver Blume published on the company’s intranet. According to the weekly magazine, Blume is said to have provided a concrete estimate of the potential cuts for the first time, explaining that the group’s overheads – administration, infrastructure and support services – remain around 20 per cent higher than those of its main competitors. This difference would result in a “theoretical estimate” of around 50,000 jobs to be cut globally, should no other measures be taken to address labour costs. The manager points out that this figure does not yet represent a definitive target. Volkswagen is in fact assessing, brand by brand and country by country, which measures are actually necessary and feasible. The scale of the cuts could be reduced if other measures to lower labour costs were identified. If confirmed, the new plan would be in addition to the approximately 50,000 redundancies already agreed across the group’s various brands, including Volkswagen and Audi. According to Blume, more than half of these cuts will be completed by the end of the year, bringing the potential total to around 100,000 jobs over the next few years, many of them in Germany. In his statement, the CEO also addresses the future of four German plants – Zwickau, Emden, Hanover and Neckarsulm – which are suffering from excess production capacity. According to Blume, the group’s European plants could produce around 500,000 more vehicles than current demand, and, as things stand, it is not possible to guarantee an economically sustainable level of activity for these sites. The executive nevertheless reiterated his preference for alternatives to plant closures, such as industrial conversion. tce
