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.

A consumer slump in China, coupled with the market's rapid shift toward EVs, has turned the former stronghold for VW into a weak spot.

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.

The cuts would hit hardest among the automaker's research and development activities in Germany where 4,000 to 6,000 jobs would be lost,  a business magazine said.