Volkswagen of Germany plans to expand the scope of layoffs and may cut approximately 50,000 jobs.

The senior executives of Volkswagen in Germany informed their employees in an internal notice that they might lay off an additional approximately 50,000 people on top of the previous large-scale layoffs, in order to make up for the "cost disadvantage" of the company.

An internal memo obtained by Reuters on Monday (July 13) shows that Volkswagen's CEO, Dr. Busch, said that after agreeing to lay off 50,000 employees across the group (including subsidiaries of Audi and Porsche), it was calculated that Volkswagen had a 20% cost disadvantage compared to similar companies. Therefore, it was necessary to further cut costs, which meant that Volkswagen had to "theoretically" reduce another 50,000 positions globally.

Blum said, "We are assessing the situation of all brands, companies and regions in order to determine the actual necessary and feasible scale of adjustments."

Volkswagen (also known as FAW-Volkswagen) has witnessed a decline in profits in recent years. According to earlier reports by the media, at its annual general meeting held in June, the Volkswagen Group introduced a major reform plan, initiating the largest business restructuring in the 88-year history of the brand.

According to the reorganization plan, the Volkswagen Group is to reduce 19,000 jobs in Germany by the end of 2026, and by 2030, it aims to cut a total of 50,000 positions, accounting for approximately one-sixth of the total number of employees in Germany.