Volkswagen's woes are trickling down to the people who deserve it the least: its employees. New Volkswagen CEO Matthias Mueller warned workers of "massive cutbacks" to come today at a company meeting.

Mueller didn't give any specific details as to what investments or projects would be cut but told employees that the process "will not be painless," according to both both The Associated Press and Reuters.

Mueller took over Volkswagen last month after previous CEO Martin Winterkorn resigned in the wake of the discovery that the company had cheated on emissions tests. Volkswagen has admitted to not only deliberately deceiving regulators by using software to circumvent inspections of many of its diesel cars. Ultimately, the problem affects some 11 million vehicles.

Unsurprisingly, the scandal will have serious financial repercussions for the company. Today, Mueller told the employees that many of the cars could be fixed by replacing the software, but others would need unspecified mechanical fixes.

Meanwhile, Volkswagen faces as much as $18 billion in fines from the EPA alone, and class action lawsuits are already piling up. The bigger problem, however, may be the ripple effect that massive layoffs could have on the European economy. Although the fallout from the scandal Volkswagen, the worst is likely yet to come.