Volkswagen Group CEO Oliver Blume has confirmed the company plans to cut an additional 50,000 jobs globally, bringing the total proposed job reductions to 100,000.

This move is part of a broader strategy to address a 20% cost disadvantage compared to competitors, as highlighted in an internal memo shared with Reuters.The decision comes amid declining profits, rising tariff costs, and intense competition in China.Blume emphasized the need to streamline operations across all brands, including Porsche and Audi, to enhance efficiency.

While the memo outlines a 'theoretical deduction' of 50,000 jobs, it also acknowledges the complexity of implementing such cuts, particularly in Germany's manufacturing network.

The plan has sparked backlash from workers, with labor representatives on the supervisory board blocking proposals for factory closures, including sites in Emden, Hanover, Zwickau, and Neckarsulm.

Blume has suggested alternative uses for underused facilities, such as producing Chinese Volkswagen models or exploring defense industry opportunities.The memo reflects ongoing efforts to balance cost-cutting with maintaining operational viability in a rapidly evolving automotive market.