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Xbox CEO Asha Sharma issued a dire warning to staff on Monday: "Our business today is not healthy. We must reset Xbox."

Sharma's memo, first published on the Xbox website, announced cuts of 3,200 jobs tied to Microsoft's Xbox division, or equal to about 20% of staff, as deteriorating margins and disappointing Game Pass subscriptions have forced the unit into a major restructuring effort.

The 3,200-job reduction will be split into two waves: the first 1,600 layoffs will begin this week, with another 1,600 occurring over the rest of the fiscal year, according to the memo.

Last month, Sharma told employees in another memo that Xbox's "accountability margin," the metric Microsoft uses to reflect profit margin, had slipped to 3% and that annual revenue had tumbled to alarmingly low levels. "Going forward, this cannot continue," she wrote then.

The CEO said:

After careful consideration, I've made the difficult decision to reduce our team by approximately 3,200 throughout FY27. This will include approximately 1,600 role eliminations today, and in addition, four studios will leave XBOX to new management. I recognize that a year-long restructuring creates additional challenges. Unfortunately, it is not possible to make all the necessary changes in a single day, and I wanted to be direct about the scale.

. . .

Our business today is not healthy. We are operating on margins that are 3-10x lower than those of comparable platform and publishing businesses. We entered Gen 9 with a smaller install base and a higher cost structure. To grow, we bet on Game Pass, multi-platform, and a broader portfolio of content. While those businesses have created meaningful value, they did not grow at the pace we expected. As that happened, our core business weakened, and we added more teams, more investment, and more time, hoping for a better outcome. And now the industry is facing the most severe hardware crisis in its history. We must reset XBOX.

She provided color on restructuring across Xbox's content portfolio:

Since 2018, we have aggressively expanded our studio portfolio while the number of games created each month across the industry now outpaces the last ten years combined. We now find ourselves competing not only with the largest publishers, but also with smaller independent studios. It is neither possible nor desirable to own every great independent studio. We have also learned that we are not the best home for every type of studio; in a typical year, we lost 64 cents for every dollar we invested. As we reset XBOX, we will help independent creators succeed by providing open development tools and audiences to realize their vision.

Compulsion Games and Double Fine Productions will return to management and transition to independent studios with their IP, catalog, and runway for their next games. Ninja Theory and Undead Labs have entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3. In France, Arkane's management is beginning required consultation with its Works Council to review potential strategic options.

We are also making reductions across other units, and in some cases, shifting investment to focus on higher priority projects. These changes vary in size across Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and XBOX Game Studios. None of our first party publicly announced games or projects are being cancelled as part of these reductions.

In addition, Mojang and King will now report directly to me. These two studios have increasingly become platforms and are our largest by monthly active players. They bring critical geographic, demographic, and differentiation to XBOX.

The changes at Xbox come as the broader video game industry remains stuck in a post-pandemic slump. Compounding the pressure is the memory-chip squeeze, fueled by AI data-center demand, which has pushed console production costs higher and forced both Xbox and PlayStation prices to climb.

The release of GTA VI, now about 135 days away, cannot come soon enough. WallStreet analysts expect the blockbuster launch to drive a new wave of console demand and potentially produce some tailwinds for the struggling gaming industry.

By Zachary Skidmore of DataCenterDynamics

New Jersey lawmakers have passed a bill that will direct the state's Board of Public Utilities (PUC) to establish a dedicated data center tariff for facilities with a capacity of 50MW or more, in an attempt to shield other ratepayers from cost increases tied to new builds.

A similar bill was originally proposed in June of last year by Democratic assemblymen Dave Bailey and Joe Danielsen. However, that initial bill was pocket-vetoed by then-governor Phil Murphy, who did not sign it before his term ended.

Following the veto, the bill was replaced with S731, which proposed broader protections than the previous bill. It will now head to Democratic governor Mikie Sherrill for final approval. Assemblyman David Bailey Jr. said Sherrill's office was involved in drafting the latest version and expressed optimism she would sign it.

The new bill is broader than the previously vetoed bill, applying to both existing and new facilities, and lowering the threshold from 100MW. It also aggregates facilities that are under common ownership or on contiguous sites, treating them as a single large data center for purposes of the threshold.

Other provisions in the bill include requiring data centers to demonstrate their project is not proposed elsewhere to avoid speculative applications, providing financial guarantees to take or pay for at least 85 percent of the requested service for ten years, and committing to demand response and flexibility programs. In addition, the bill mandates that large data center customers be curtailed before residential customers during grid emergencies.

It will also require the PUC to prioritize interconnection for data centers that make binding commitments to bring their own clean generation or storage.

The bill is the latest to be passed within a state legislature, with several already enshrined in law, and many others currently making their way through the approval process.

Last month, regulators in Oregon approved a new rate class for data centers and other large loads, which is now in effect.

Before this, Oklahoma’s governor, Kevin Stitt, signed into law a new bill aimed at protecting ratepayers in the state from rising utility and infrastructure costs associated with data centers. This closely followed Florida, whose governor signed into law a similar bill that prohibited utilities from passing data center infrastructure costs on to residential and small-business ratepayers and required large-scale users to bear their full cost of service.

Other states to see similar rules proposed and passed include Ohio, North Carolina, and Virginia, to name a few.

We previously discussed the unprecedented collapse observed in recent months in Chinese oil demand and imports, which led to the bizarre scenario where even Iran can't find buyers (read China) for its temporarily unsanctioned oil armada (see "Iran Runs Into Big Problem: No Buyers For Its Oil, As Full Tankers Pile Up Off China") and which prompted even JPM to point out that something bigger is going on behind the scenes.

"The scale of China's oil demand collapse has been so dramatic that Chinese policymakers are reportedly examining whether this historic slump reflects a temporary response to elevated global prices or a more structural shift in consumption patterns." - JPM

— zerohedge (@zerohedge) July 4, 2026

Understandably, with such a huge source of demand sidelined, today Bloomberg reported that Saudi Arabia has made big reductions to its main crude oil prices for buyers in Asia, selling barrels at a discount for the first time since it embarked on a price war in 2020, as a surge of global supply heightens competition to find buyers.

State producer Saudi Aramco will lower Arab Light oil for next month by $11 a barrel to a $1.50 discount over the regional benchmark, according to a price list seen by Bloomberg. The last two times it sold the grade at a discount were during price wars in 2020 and 2015.

The large drop in prices, the biggest in at least 26 years, follows a surge at the height of the Iran war when the disruption to the Strait of Hormuz restricted the kingdom’s flows; it is also bigger than the $8 decline expected in a Bloomberg survey.

The surprise price cut underscores the surging volumes of oil that are now available on global markets, as the interim US-Iran peace deal enables Gulf producers to ramp up exports at the same time as a flood of trapped barrels escape through the Strait of Hormuz. The size of the cutback also raises questions whether other Middle East producers might be forced into steeper cuts to their prices as they compete for customers (mostly China, as India is quite happy importing cheap Russian oil) that are inundated with supply.

Aramco’s August prices are for buyers who purchase crude on long-term contracts, the main way in which the kingdom markets its barrels. Some traders who spoke to Bloomberg said even with such a large reduction, the barrels are more expensive than spot supplies from other regional producers that are available for immediate purchase on an adhoc basis.

According to Bloomberg, official prices from other producers in the region are expected to be released in the coming days.

Oil has plunged since the agreement between US and Iran came into effect in the middle of June, allowing traffic to resume through the Strait of Hormuz, the key chokepoint that had been largely blocked since the start of hostilities. Brent crude has given up all its wartime gains, and was trading below $72 a barrel on Tuesday.

Before the war, Saudi Arabia loaded most of its crude from within the Persian Gulf. However, Aramco diverted a chunk of those flows to its Red Sea facility at Yanbu as the war effectively blocked Hormuz. The kingdom made the rare move of selling some cargoes on a so-called spot basis in recent days, as it got resumed flows of shipments that had been trapped inside the Persian Gulf.

There's no time like the eve of the major annual NATO summit for Trump to reignite his longstanding feud with Italian prime minister Giorgia Meloni, apparently. The American President blasted out the below Truth Social just before heading to Ankara, Turkey for the gathering of NATO heads...

With just a few days to go before the next NATO summit, POTUS Donald Trump has once again attacked the Italian Prime Minister, Giorgia Meloni.

He portrays her as worshipful and calls for a “restraining order” to be imposed on her.

A few weeks ago, Trump had said that Meloni… pic.twitter.com/hHJTn8yCra

— Crazy Ass Moments in Italian Politics (@CrazyItalianPol) July 5, 2026

The doctored image featuring the caption "Restraining order needed" marks but the latest escalation between to the two leaders. Meloni has not responded or commented directly regarding the Truth Social Post, and is unlikely to given that Italy likely wants to avoid escalation.

"People come and go but relations must endure," Italian Defense Minister Guido Crosetto remarked on the prime minister still being in Trump's crosshairs to news channel Sky TG24. And Foreign Minister Antonio Tajani tried to brush it off while presenting an optimistic picture of future relations, saying he was "sure that transatlantic relations go well beyond individual comments."

This new post follows on another Truth Social post from June, in which Trump accused the Italian PM of asking for a picture with him "over and over" at the G7 Summit in France.

At heart of the feud is Italy's breaking with Trump over his Iran operation. This has included denying shared base usage for American military flights connected with Operation Epic Fury.

Trump had claimed earlier in the summer of Meloni, "She is doing poorly in Italy with her level of popularity, possibly because she turned down the United States of America, a Country that truly loves and protects Italy, when it came to denying Iran from obtaining or developing a Nuclear Weapon."

He then suggested that Meloni wanted to be "friends again" to get her "numbers up" - but has appeared to stipulate that she must fully open up Italian bases for US aircraft usage once again.

Meloni in response to the prior June post slammed the US president for his "senseless" and "constant, unprovoked attacks".

"As for my popularity, being your friend has certainly not helped it, nor does it depend on my relationship with you," she shot back. "My popularity is none of your concern. I suggest you focus on yours."

All of this could serve to make any close-quarter contact at the NATO summit in Ankara very awkward - also as the two will certainly be in the same general vicinity for events like the group photo.

Following US manufacturing small dip in June (though still expanding), the US Services sector PMI surveys are a little more mixed but both still solidly in expansion in June:

• S&P Global US Services PMI ticking up on the month from 50.7 to 51.2 (but a smidge below the 51.3 flash print)

• ISM US Services PMI dipped from 54.5 to 54 (in line with expectations)

“A slight acceleration of business growth in the services economy takes the expansion to the strongest since the outbreak of the war in the Middle East," says Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, "though the pace of growth remains lacklustre compared to that seen at the start of the year before the conflict."

The survey data are hence broadly indicative of the economy only growing at a 1.2% annualized rate over the second quarter...

Similarly, while business growth expectations for the year ahead improved in June, they remained subdued compared to that seen prior to the war as businesses lack clarity over the outlook, both from economic and geopolitical contexts.

Here's what ISM Respondents are saying...

• “We continue to experience higher prices due to the Persian Gulf conflict through rising diesel fuel costs and increased input costs for resin-based packaging. The brunt of the impact will be experienced in the third quarter (Q3) of 2026, but we are feeling the impact now. Suppliers are aggressively attempting to pass through price increases.” [Accommodation & Food Services]

• “Extreme drought in Virginia is creating financial problems for farmers and the agricultural industry. Dramatically reduced spring crops harvest has created significant cost increases in feed expense. The barley grain crop was nearly totally lost due to the early hot weather and spring freeze. High fertilizer cost increases due to the war in Iran and increased freight cost has driven cost for crops above breakeven levels on many farms. Many dairy farmers are struggling with crop shortages, high input cost and below milk price breakeven. The financial stress from higher cost due to the Iran war and drought-related forage losses has resulted in decreased spending in the agricultural sector.” [Agriculture, Forestry, Fishing & Hunting]

• “In general, our company (commercial construction) is doing well. Pipeline is healthy for current and future work. Material pricing is higher and lead times on certain components in support of data center piping is elongating.” [Construction]

• “In addition to the known semiconductor manufacturing issue, now there are concerns regarding memory availability that is materially impacting our OEM’s purchasing patterns, which is affecting availability and driving my company’s purchasing decisions, including how much longer we are sweating our assets, how frequently we refresh, and how we approach maintenance contracts.” [Finance & Insurance]

• “Despite economic headwinds like persistent inflation, patient volumes and overall business activity remain strong reflected mainly by outstanding revenue performance. Supply chains remain resilient as well; back orders are at a historical low, and few if any critical products are experiencing difficulties. Labor is steady, as we continue to add full-time workers while the forecast remains positive. Given the continuation of the conflict in the Middle East, we are beginning to hear that cost of goods increases are on the horizon but have yet to materialize. Cost increases are in focus for the next quarter.” [Health Care & Social Assistance]

• “From a strategic supply chain perspective, we are seeing increased complexity in managing total landed cost due to tariffs, import/export constraints and duty recovery mechanisms, requiring more proactive coordination across sourcing, logistics and compliance teams. Recent discussions internally also highlight the impact of tariff programs and duty drawback evaluations on purchasing strategies.” [Mining]

• “Demand remains strong in infrastructure, environmental, and resilience projects, while procurement faces persistent labor inflation, supplier capacity constraints, and regulatory complexity—particularly in California and other high-cost markets. Labor-driven categories remain elevated despite easing goods inflation. The impact is higher rates, longer lead times, and increased importance of capacity assurance vs. lowest-cost sourcing.” [Professional, Scientific & Technical Services]

• “Business has been very strong during what is usually a less active time of the year. Pricing is stable, and employment just where we want it to be. Supply chain strong with no challenges.” [Retail Trade]

• “The utility industry continues to experience extended lead times, supply-chain constraints, material shortages, and pricing volatility. As a result, suppliers are often limiting quotation validity periods, with many RFQs carrying expiration dates as short as 24 hours. These conditions require timely evaluation and procurement decisions to mitigate the risk of price changes and availability issues.” [Utilities]

• “We are experiencing continued sequential top-line growth driven mostly by increased prices.” [Wholesale Trade]

• “In addition to the known semiconductor manufacturing issue, now there are concerns regarding memory availability that is materially impacting our OEM’s purchasing patterns, which is affecting availability and driving my company’s purchasing decisions, including how much longer we are sweating our assets, how frequently we refresh, and how we approach maintenance contracts.” [Finance & Insurance]

Williamson notes that the prospect of higher interest rates also acted as a further headwind to growth, notably in the financial service sector, where business expectations remain especially muted, adding that “a key underlying factor behind the relatively subdued performance of the services economy was again elevated price pressures."

Although easing slightly, aided largely by lower oil prices, costs continued to rise at a steep rate in June, driving up rates levied for services.

Customer push-back against these high prices was again widely reported, most notably in consumer-facing businesses.

But Williamson concludes that "consumer-facing companies are nevertheless reporting that further price falls should help stimulate sales in the months ahead, providing a ray of hope for both the growth and inflation outlooks.”

Russia has unleashed another massive drone and missile attack wave on Ukraine's capital, just on the eve of the major annual NATO summit, which is in Ankara, Turkey this week.

Over a dozen people were killed, with heavy damage against residential structures observed. The death toll could rise, but "In total, 14 people have died and 117 have been injured in Kyiv," the office of the attorney general said on Monday morning. Rescue crews have been retrieving bodies from under rubble throughout Monday.

The Russian Defense ?Ministry announced that it used long-range weapons ?and drones to carry out a "massive" attack on ?Kiev and other cities, saying that military bases and energy facilities were successfully struck.

According to details of the timing of the attack wave:

The Kyiv Independent reported that the first explosions were heard at about 1:40am local time, followed by more strikes at 2:10am and 3:15am.

Thousands of residents fled to underground shelters, it reported, as air raid sirens sounded across Ukraine. At least 15 buildings were damaged in Kyiv in the strikes, including four in the capital’s historic Podilskyi district, Tkachenko said.

As for the significant numbers of projectiles focused on the Ukrainian capital alone, another source reports:

Ukraine's air force said Russia used 68 missiles, including 23 ballistic and six super and hypersonic missiles, as well as 351 drones in the attack. Air force units shot down or neutralized 37 missiles and 326 drones, but none of the ballistic missiles or super and hypersonic missiles, the air force data showed.

Neighboring Poland briefly scrambled fighter ?jets as a preventive measure.

Rumors of warehouse with depleted uranium having been struck...

According to Kyiv sources, Russia may hit a military warehouse with depleted uranium-238 ammunition. This is why residents were ordered to stay indoors and keep windows closed. The small town of Vyshneve is being fully evacuated. The detonation is still ongoing.

This could have… pic.twitter.com/LlZQFlDxsB

— Diana Panchenko ???? (@Panchenko_X) July 6, 2026

Rumors persist...

DEPLETED URANIUM FEARS AFTER STRIKE NEAR kiev: 600 EVACUATED

More than 600 people have reportedly been evacuated from the outskirts of kiev following an overnight strike on a storage facility containing depleted uranium ammunition for Abrams tanks.

The depot, located in the… pic.twitter.com/pePX4wsWxU

— Russian Market (@runews) July 6, 2026

But Ukraine has been launching its own significant drone salvos against Russia, with devastating effect against its energy infrastructure.

In its second large-scale attack in under a week, drones were sent against an oil terminal and port in St. Petersburg, with damage being observed in the Baltic Sea ports of Vysotsk and Ust-Luga. More attacks also impacted Sevastopol on the Black Sea, resulting in a power blackout there.

Russia hit something big in Kiev pic.twitter.com/YFAeX2QFU8

— Glenn Diesen (@Glenn_Diesen) July 6, 2026

According to some further details in CBNC being reported:

Ukrainian officials reported that forces struck a major oil terminal in Russia’s second-largest city, St. Petersburg, as well as the Kronstadt Naval Base, the main base of the Russian Baltic Fleet, on Friday and Saturday. The attacks reportedly caused fires at both the oil terminal and the military facility.

Further Ukrainian attacks on Russian energy infrastructure were reported on Monday morning. Ukraine’s military said via Telegram that it had struck oil refineries in Russia’s Yaroslavl and Leningrad regions overnight. CNBC couldn’t independently verify the report.

It was only on Saturday that President Trump said he had a "business-like and constructive" nearly 90-minute phone call with his Russian counterpart Putin.

The prospect of renewed US mediation efforts to find peace in the Ukraine conflict was discussed, and Trump was even (once again) invited to visit Russia for an in-person summit.

Ukrainian drone attacks damaged Russia’s Baltic Sea ports of Vysotsk and Ust-Luga, a major oil export outlet, Reuters reported. Leningrad region’s governor claimed 56 drones were downed, with debris recorded near Ust-Luga port and the Luga training ground. #Ukraine pic.twitter.com/8QJ5zKEoSN

— NOELREPORTS ???? ???? (@NOELreports) July 6, 2026

While the prospect of renewed talks and diplomatic effort was raised, the two warring sides seem further from dialogue than ever, and the Zelensky government is finally sensing that it has found a 'weak point' - hammering Russian energy and creating a national fuel shortage crisis.

By Benjamin Picton, senior market strategist at Rabobank

When A Toll Isn't A Toll

Yields on 10-year Treasuries finished last week up 11bps to 4.48% while yields on 10-year Bunds rose 8.5bps to 2.93%. Those higher borrowing costs came despite signs of weakening in the US jobs market, a weaker-than-expected prices paid figure on the ISM manufacturing index, and a surprisingly weak Eurozone CPI inflation report that follows in the wake of lower than expected inflation readings in the UK.

Market-based expectations of the future path of the Fed Funds rate finished the week a little lower than it started, with pricing of a future rate hike pushed out from October to December. 2-year Treasury yields fell by almost 4bps on Thursday after the payrolls report confirmed hiring in June was little better than half the expected figure.

This was still enough for the unemployment rate to tick down to 4.2% as a lower participation rate saw the labor force contract. Nevertheless, 2-year yields were higher across the week as sovereign curves bear-steepened.

Brent crude posted its first weekly gain in almost a month last week to see the front contract close up 0.18% at $72.12/bbl. The gains appear to have been short-lived as news of continued tanker flows through the Strait of Hormuz and a decision by OPEC+ over the weekend to ease production restrictions by 188,000 barrels/day from August steer the price action lower this morning. Announcements of increased production are all well and good, but when much of that production is occurring in the Persian Gulf or in Russia (where Ukrainian strikes against oil infrastructure are ongoing) the ability to actually ship the product to market will remain the critical limiting factor.

On that note, official figures show that Hormuz traffic is back to approximately 30% of pre-war levels, though this likely understates the true picture as many vessels are transiting dark (i.e. without their tracking systems on) to avoid the attentions of Iran’s IRGC. Bloomberg reports that six vessels transited the route closest to the Omani coastline under US auspices on Sunday without incident. That follows reports of up to eight vessels performing u-turns (with some later being redirected through the Iranian route) after attempting to transit close to Oman on Friday and Saturday.

Updated data from Kpler and Vortexa shows that crude exports from the UAE surged in June to exceed pre-war levels and approach record highs. The UAE’s recent decision to leave OPEC and OPEC+ is considered bearish over the longer term for energy prices as a diminished share of potential production is subject to non-market constraints.

On the other hand, Iran again indicated over the weekend that it will be instituting “service fees” on vessels transiting Hormuz through its territorial waters once the 60-day negotiating period kicked-off by the signing of the Iran-US memorandum of understanding expires. According to Iran’s ambassador to China a new fee regime is being designed in consultation with Oman and will include “special considerations” for China and other friendly nations in determining the level and type of fee applied. According to the ambassador, this is not a toll. This might prove be a convenient fiction for all parties given President Trump’s unyielding view that a permanent toll regime would not be acceptable after the 60-day negotiating period expires.

Critically, what this little titbit sets up is exactly the type of scenario we have been pointing towards for some time: the ‘oil market’ splitting into ‘oil markets’ with terms over pricing and access being determined by which geopolitical camp you happen to sit in, and a series of quid pro quos informing the deal that each party gets.

The prime movers here are the United States and China, with Iran having clearly chosen China and the UAE hitching its wagon to the US of A. An easy tell that this scenario is playing out will be pressure from Iran to have other Gulf producers accept a toll that isn’t a toll, and/or have their cargoes priced in CNY rather than USD. The USA, similarly, will pressure Gulf allies to price in Dollars and normalize relations with Israel to expand the Abraham Accords and have oil flow from east to west to cut out Iran entirely and demonstrate to China that Uncle Sam can step on the hose whenever he likes.

Europe and the balance of Asia are likely to be reduced to the role of spectators in these affairs. Highlighting the weakness of Europe’s current position in the Great Game, the Wall Street Journal carried a story last week on how the German Mittelstand is being decimated by state-backed Chinese competition, with the most energy-exposed sectors of the manufacturing economy faring particularly badly.

To a certain extent, the hollowing out of German industry at the hands of China mirrors the hollowing-out of British finance at the hands of the United States as more and more firms choose to list in New York in pursuit of higher multiples or are bought-up as value picks. This has elicited a response from the British Government in the form of the Mansion House compact aimed at encouraging pension funds to hold more British assets. If that fails, will the discussion then turn to capital controls under an Andy Burnham premiership?

Similarly, the rapid decline of the German Mittelstand will almost certainly elicit further protectionist measures from officials in Brussels who have just spent the last 18 months and more criticizing Washington for taking similar steps to protect American industry. In the absence of a hold-your-nose peace accord with Russia to reduce energy costs that will almost certainly not happen, what is Europe’s grand macro strategy to avoid being de-industrialised by China and vassalized by US energy and finance?

Germany was once the industrial engine of Europe, but years of disastrous climate change policies, high energy costs, and left-wing economic mismanagement have battered its manufacturing base. This pressure has been roiling the country's auto industry, where struggling carmakers are restructuring operations through workforce reductions, production cuts, and capacity reductions.

Germany's top financial newspaper, Handelsblatt, reports that Porsche is preparing another round of deep job cuts at its main factories as the sports car maker grapples with weak demand.

The company is considering eliminating as many as 4,000 additional jobs at its Zuffenhausen plant, the outlet said, citing people familiar with the matter. These reductions would come on top of previously agreed cuts impacting 3,900 jobs.

Porsche's Zuffenhausen plant in Stuttgart is home to the brand's core sports car production lines, including the 911, 718, and Taycan.

Administration and management roles are expected to be reduced the most, while Porsche may also cut capacity at its Weissach development site by up to 30%.

Last month, Porsche CEO Michael Leiters said the company plans to produce at a lower capacity than the roughly 280,000 cars sold last year. He stated that the company must "make money with fewer cars."

Porsche's profit eroded further in the first quarter as the automaker faced mounting pressure from tariffs, geopolitical turmoil, and gaps in its model lineup. The emergence of Chinese EV giants like BYD and Chery in Europe is another troubling development for EU automakers.

Porsche is part of the Volkswagen Group, where the VW CEO recently warned that more than 100,000 jobs could be eliminated in a massive overhaul.