The CEO of Volkswagen announced a major reorganization of the group, including possible layoffs of up to 120,000 employees.

Oliver Blume, the CEO of Volkswagen, reaffirmed on Friday the plans for the most extensive reorganization in the company's history, following protests generated by cost-cutting measures. Blume stated that the group will become more robust and competitive in a challenging global environment, taking responsibility for a sustainable future.

The company will implement a new target for 2030 and will intensify cost-cutting measures, with estimates of laying off up to 100,000 employees, according to sources. Four factories in Germany could be closed by 2034, but this information has not been officially confirmed.

Despite the challenges, CFO Arno Antlitz assured that Volkswagen will continue to invest in electric vehicles and software solutions, while maintaining the competitiveness of combustion engine vehicles at the same time. Sales decreased in the second quarter, especially in the Chinese market, and the group plans to reduce its model range by up to 50%.