German automaker Volkswagen has decided to close at least three plants and cut tens of thousands of jobs at all other plants.

"The largest German industrial group is preparing to start selling assets in its home country," said Daniela Cavallo, president of the General Works Council, "all German VW factories are affected by this." None of them are fully secured."

Earlier, Volkswagen issued its second profit warning in less than three months. Weak demand in the Chinese and European markets, as well as a failed transition to electric vehicle production, have hit the manufacturer's earnings.

This will be the first time in the company's 87-year history that Volkswagen plants are closing in its home country. Currently, VW has 10 factories in Germany and about 300,000 employees.

Volkswagen was previously reported to be considering a number of cost-cutting measures for its flagship brand, including a 10% wage cut and a two-year wage freeze, as it seeks to save €4 billion.