Troubled German car giant Volkswagen has denied a report that it is planning to lay off up to 30,000 employees.

“We do not confirm this figure,” a Volkswagen spokeswoman was quoted as saying, following reports of the proposed job cuts in German business magazine Manager Magazin.

“One thing is clear,” she said. ” Volkswagen has to reduce its costs at its German locations. This is the only way the brand can earn enough money for future investments.

“How we achieve this goal together with the employee representatives is part of the upcoming talks,” she said, adding that VW could not confirm the figure mentioned.

Investment funding set to fall

Manager Magazin reported that the car maker was looking at axing the jobs over the medium term. It said CFO Arno Antlitz was also planning to cut funding for investments over the next five years to €160bn.

That is a cut of €10bn from an earlier VW announcement that its medium-term planning target between 2025 and 2029 would be €170bn.

Earlier this month, CEO Oliver Blume told employees that the company would have to end a three-decade-old job protection pledge that would have prevented layoffs up to 2029.

The statements have stirred outrage among worker representatives and concern among German politicians.

Analysts at Jefferies investment bank had suggested VW was considering the closure of between two and three plants, potentially putting up to five German sites at risk and threatening 15,000 jobs.

Research and development at risk

However, the Manager Magazin article said the job losses could be up to double that number, with many going in the research and development departments.

In recent years, investors have been critical of VW’s spending on investments, arguing that this is cutting the amount of money available as dividends for shareholders.

The German government has also stepped into the conversation. Germany’s economy minister, Robert Habeck, said the government is looking at ways of supporting Volkswagen as he acknowledge the company’s importance to the country.

“VW is of central importance to Germany,” he said.