German automaker Volkswagen has confirmed it is considering an additional 50,000 job cuts worldwide, citing intensifying competition in the automotive market and the need to remain competitive.

According to Reuters, Volkswagen CEO Oliver Blume informed staff about the decision in an internal memo as the automaker faces competition from China, significant profit loss and billions of euros in tariff costs.

“We are currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible,” Mr Blume said in the document.

The latest announcement came after the company had already agreed to reduce its workforce across all groups, including Porsche and Audi subsidiaries, by 50,000, bringing the total to 100,000.

It marked the first time Volkswagen had officially commented on reports that it was planning to cut thousands of jobs worldwide.

“As of today, we still cannot confirm competitive use cases for the plants of Emden, Hanover, Zwickau and Neckarsulm in the 2030s,” Mr Blume stated. 

He, however, noted that the details of the reduction were yet to be finalised but assured staff that they would be consulted throughout the process. 

“Of course, it’s understandable that not everything has been planned ⁠out down to the last detail yet, and that certain issues still need to be further discussed and evaluated. 

“There will certainly be more meetings in which we will work hard to find the best solutions,” Mr Blume added.