Volkswagen warned it could need to cut 50,000 jobs as it strives to align costs with rivals. In an internal memo released Monday, CEO Oliver Blume said the company is reviewing workforce adjustments across its brands and regional subsidiaries. He also noted that the future of four German plants cannot be guaranteed.

Blume described Europe as facing “massive economic and geopolitical pressure,” with Germany especially vulnerable as an export‑driven economy. The automaker’s traditional model of designing and building cars in Germany for global markets is being challenged by rising European costs, new U.S. tariffs, and the rise of competitive Chinese technology.

The memo, reviewed by The Wall Street Journal, signals a renewed cost‑cutting drive amid intensifying competition from China and shifting market dynamics. If implemented, the cuts would represent one of the largest workforce reductions in the auto sector in recent years.