Employees of German carmaker Volkswagen hold IG Metall trade union flags on July 9 as they protest against restructuring and mass job cut plans at the company's plant in Zwickau, eastern Germany. Volkswagen's boss told employees on Monday a further 50,000 jobs could be cut at the struggling auto giant, according to an internal memo seen by AFP, confirming reports the group is targeting 100,000 cuts worldwide. JENS SCHLUTER/AFP
Volkswagen Group CEO Oliver Blume has signaled another wave of deep cuts at the automaker that could bring total job reductions to 100,000 worldwide.
In a memo to employees on Monday, Blume said roughly 50,000 additional positions would need to go, to address a 20 percent cost disadvantage versus comparable companies.
"Since half of our overhead costs result from personnel costs, a theoretical calculation — assuming no change in labor costs — would result in the elimination of approximately 50,000 positions worldwide," he said. "We are currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible."
The group's profits fell sharply last year — the result of falling sales in key markets and intensifying competition from rival brands.
