Volkswagen Group CEO Oliver Blume informed employees about plans to cut up to 50,000 jobs worldwide, DW reports.

This figure is driven by a plan to reduce spending on administration, infrastructure, and core business support to a competitive level, according to an interview with Blume published in the company newsletter.

The letter from Volkswagen’s chief executive also notes that VW’s overhead costs are 20% higher than those of other companies in the segment. The group also intends to reduce staff at its other brands. Most of them are located in Germany, Der Spiegel notes. According to Blume, by the end of 2026 this target will be more than half achieved.