Volkswagen’s chief executive Oliver Blume confirmed in an internal memo plans to axe 50,000 jobs, which would bring total cuts to 100,000, potentially one of the largest job‑cutting programmes in corporate history.

The supervisory board met Thursday but failed to agree on the radical staff reduction due to strong opposition from union representatives; however, the company announced a 50 % reduction in its model range and said discussions will continue.

Blume said Volkswagen faces a 20 % overhead cost disadvantage versus peers, and because personnel costs account for half of overheads, a theoretical cut of 50,000 positions worldwide is implied.

The CEO also indicated a 500,000‑vehicle cut in European production capacity and possible closure of four Germany factories, preferring to sell sites to other manufacturers such as defence contractors. Unions warned the speculation has caused an “enormous loss of trust” between workers and management.

Analysts, including Bernstein’s Stephen Reitman, questioned the lack of detail on execution, noting the talks resemble the 2024 round that ended without major plant closures. Blume argues the export‑heavy model is no longer fit for purpose amid rising Chinese competition.