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.

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.

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

Reports indicate Volkswagen may cut up to 30,000 jobs amid financial pressures. VW denied that number, but declined to say how many employees might be let go. Some of the deepest cuts could be made to the research and development departments.