Wolfsburg: Volkswagen CEO Oliver Blume has announced to employees that the German automaker may face the elimination of up to 50,000 more jobs worldwide if it does not succeed in reducing overhead costs, which are significantly higher than those of its competitors.

According to Anadolu Agency, Blume shared in an internal interview on the company's intranet that the administrative and support functions at Volkswagen are approximately 20% more expensive compared to similar automakers, as reported by the German weekly Der Spiegel. He cautioned that unless this cost gap is addressed, substantial job cuts could become necessary, although the final number might be reduced if other labor-cost savings are realized.

This warning accompanies an already existing plan to cut about 50,000 jobs across Volkswagen, Audi, and other group brands by 2030. Blume indicated that the company is progressing well with this target and anticipates achieving more than half of the reductions by the end of this year.

Volkswagen, the largest carmaker in Europe, has been facing challenges such as sluggish demand, high production costs in Germany, trade tensions with the U.S., and increasing competition from Chinese electric-vehicle manufacturers.

Der Spiegel reported last week that Volkswagen plans to cease vehicle production at four German factories over the coming years, with the Zwickau and Emden factories expected to close within five years, followed by the Hannover commercial vehicle plant in 2032, and Audi's Neckarsulm plant in 2034.

The internal announcements have sparked criticism from labor representatives, who argue that management is leaving employees in a state of uncertainty. Volkswagen works council chief Daniela Cavallo criticized Blume for not informing "tens of thousands of completely unsettled, even frightened employees" about the essential elements of the restructuring plan.

Recently, the IG Metall union organized protests at various Volkswagen plants and facilities across Germany.