Volkswagen is set to make an unprecedented move: closing three German factories in a drastic cost-saving effort aimed at cutting over $4.3 billion. The announcement signals a significant shift for VW, a brand that has maintained a strong presence in Germany since its founding.

Volkswagen plans to close at least three factories in Germany, lay off tens of thousands of staff and downsize remaining plants in the country, the company’s employee group said Monday.

Volkswagen says significant cost cuts are urgently needed as it reports a steep decline in third-quarter earnings and faces employee representatives angry at the possibility of the automaker’s first plant closures in Germany.

Volkswagen plans to close its first-ever German plant amid declining profits, risking tens of thousands of jobs and prompting union backlash.