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| Volkswagen Group |
The chief executive of Germany's Volkswagen Group, Oliver Blume, has revealed for the first time the likely scale of job cuts expected at Europe's largest carmaker.
Blume said that if no changes are made to labor costs, the number of jobs that could be affected would be around 50,000 worldwide.
Blume explained that this figure is based on a plan aimed at reducing management, infrastructure, and core business support costs to a competitive level, adding that these costs at Volkswagen are still 20% higher than the average for similar companies, which means that the theoretical calculation, if labor costs remain unchanged, points to around 50,000 jobs worldwide.
Blume noted that necessary and possible adjustments are currently being assessed across all brands, companies, and regions within the group, adding that staffing costs are not only related to the number of employees, but also to labor costs, saying: "We must also use this factor," indicating that the final size of the job cuts has not yet been decided.
