"Volkswagen said it plans to cut about 35,000 jobs in Germany by 2030 under an agreement struck with unions that aims to save 4 billion euros a year, AFP reported.
"With the agreed package of measures, the company has set a decisive course for its future in terms of costs, capacities and structures," said Volkswagen CEO Oliver Blume.
The influential trade union IG Metall welcomed the agreement, which came just in time for Christmas and put an end to strikes, as it avoids forced redundancies and plant closures.
The company initially said it was considering closing production sites in Germany, which would have been an unprecedented move in the carmaker's 87-year history.
The situation at Volkswagen, which employs about 120,000 people in Germany, is "serious" and requires urgent action, management says.
The company is grappling with the transition to electric vehicles and growing competition in China from domestic manufacturers such as BYD and Geely. | BGNES
Translated with DeepL.com (free version)
