Volkswagen is preparing for up to 100,000 layoffs and is reducing investments by 15% over the next five years.

Oliver Blume, the CEO of Volkswagen AG, announced plans to lay off up to 100,000 employees from the company's global workforce, according to information published by the German magazine Manager Magazin. Additionally, Volkswagen will reduce investments by 15%, reaching just over 130 billion euros in the next five years.

Blume and CFO Arno Antlitz intend to completely restructure the company, splitting the main VW brand and component production units into separate entities. In the medium term, the closure of some production facilities in Germany is anticipated, including those in Hanover, Zwickau, and Emden, as well as the Audi factory in Neckarsulm.

Volkswagen expects a continuation of the weakness in the automotive market in China and a decline in the global market for new vehicles below 21 million units. However, the company's electric vehicle sales continue to grow, and Volkswagen considers itself well-positioned to face the challenges in the market.