Volkswagen’s chief executive has for the first time put a number on the next wave of potential job losses, telling employees in an internal memo that a further 50,000 positions worldwide could be eliminated. The figure, which would bring total cuts across the group to 100,000, was derived from a calculation that the company’s overheads run roughly 20 percent above those of comparable competitors, with half of those costs tied to personnel. The memo, seen by multiple news agencies on 13 July, also names four German plants—Emden, Hanover, Zwickau and Neckarsulm—for which management “cannot yet confirm competitive use cases in the 2030s.”

The disclosure follows a turbulent supervisory board meeting on 9 July at which labour representatives and the state of Lower Saxony, a major shareholder, blocked a restructuring proposal that reportedly included the four plant closures and deep job cuts. The 50,000 additional reductions are described as a “theoretical deduction” assuming no change in labour costs, and Blume stressed that the group is still assessing “how many adjustments are actually necessary and feasible” across all brands and regions. The memo was issued after the powerful IG Metall union staged protests at 18 sites, demanding that management break its silence over media reports of mass layoffs.

Volkswagen is already executing a separate plan to shed 50,000 jobs in Germany by 2030 through voluntary departures, with 37,000 exit agreements signed and 27,000 employees expected to leave by year-end. The new memo frames the additional cuts as part of a broader “future plan” that would halve the model line-up and shrink annual production capacity from a pre-pandemic target of 12 million vehicles to around 9 million. Blame for the cost pressure is laid on US tariffs, which the company says cost up to €5 billion a year, intense price competition from more than 150 rivals in China, and the need to make German factories more efficient.

No formal decision has been taken on the additional headcount reduction or on the fate of the four plants. Blume reiterated a preference for “intelligent solutions” over outright closures, floating possibilities such as repurposing sites for defence-industry work or building Chinese-designed Volkswagen models in Europe. The next milestone will be further rounds of negotiation between management and worker representatives, with the CEO acknowledging that the plan “only works as an overall concept” and that there is “no time to lose” in finding a viable path.