In response to a sales slump in China, Volkswagen AG plans to cut hundreds of corporate jobs and reduce costs by 20 per cent globally. The restructuring includes layoffs at its premium Audi brand and a reassessment of personnel levels amid increased competition and market shifts.

While Volkswagen is staying tight-lipped on specifics, Manager Magazin suggested research and development could take a massive hit. If their numbers pan out, roughly 4,000 to 6,000 R&D employees could be cut from the current number of around 13,000.

Volkswagen AG has begun to trim corporate jobs in China as it works to reduce overhead by a target of 20% globally over the next three years.

CEO Oliver Blume told employees that the company needed to end a three-decade-old job protection pledge that would have banned layoffs until 2029. View on euronews