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Or sign-in if you have an account.Volkswagen, which employs over 657,000 people worldwide, is grappling with a number of challenges that have also beset their competitors. Photo by JENS SCHLUETER/AFP via Getty ImagesVolkswagen AG chief executive Oliver Blume outlined a plan to eliminate as many as 50,000 more jobs globally as he attempts a far-reaching overhaul to reduce costs at Europe’s biggest carmaker.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe German manufacturer’s overhead is higher than competitors’ by roughly one-fifth, Blume said in an interview published on VW’s intranet. Reaching parity implies a “theoretical deduction” of about 50,000 positions, on top of a similar amount that’s part of a cost-savings effort launched in 2024, he said.“Group headcount has been growing for decades to a level that’s no longer viable today,” Blume said, according to the memo seen by Bloomberg News. “That’s because of changes in markets and negative effects outside of our control that weigh in the region of double-digit billion euro amounts.“FP Work touches on HR strategy, labour economics, office culture, technology and more.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Work will soon be in your inbox.We encountered an issue signing you up. Please try againVW has come through some tumultuous weeks, with a worsening business outlook prompting renewed pressure to make cuts. Blume’s plan — including the reported doubling of the original 50,000 reductions and the possible closure of four plants in Germany — met labour opposition and failed to win initial board backing. Oliver Blume Photographer: Angel Garcia/BloombergThe sites at risk are in Emden, Hanover, Zwickau and Neckarsulm. In the memo, Blume said there were “smarter options” than closing factories to address high expense levels and a drop in demand. He added that he was encouraged by an average 20 per cent improvement in factory costs in Germany over the past year.“It’s also true that today, we can’t confirm a competitive allocation for the plants,” he said, referring to the company assigning models for production around its sprawling web of sites.VW, which employs over 657,000 people worldwide, is grappling with a number of challenges that have also beset competitors Stellantis NV, BMW AG and Mercedes-Benz Group AG. The most significant are the slump in sales in China, where buyers struggle with a protracted real estate crisis. United States tariffs are also hurting profit at the usually lucrative Audi and Porsche luxury brands. Electric van assembly at a Volkswagen plant in Hanover, Germany.Paired with a sluggish European market, VW’s high costs and underused factories have moved into focus. Blume said last month that the company’s business model of developing and exporting cars from Germany wasn’t viable anymore.Last month, VW sold a 51 per cent stake in its ship engine unit Everllence, generating proceeds of about €7.4 billion (US$8.5 billion). VW has a portfolio of more 2,000 stakes and businesses, which is an “important area for change,” Blume said.The company also owns the Ducati motorcycle brand and a stake in U.S. solid state battery maker QuantumScape Corp. It plans to examine which parts of its portfolio contribute to its core automotive business and returns.—With assistance from Sasha Draeger-Mazer. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.