BERLIN — Volkswagen Group strategies to slash much more work opportunities in Germany as a result of voluntary measures these types of as partial retirement and buyout offers as component of attempts to trim fastened costs.

The settlement with labor associates could lead to as numerous as 5,000 career reductions and about 500 million euros ($598 million) in restructuring costs, according to Handelsblatt. Organization sources told Reuters the quantity could be 4,000.

“Because of to our superior investments in the growth of electromobility and digitalization, Volkswagen was capable to build a revolutionary function as a driver of automotive transform,” VW’s staff chief, Gunnar Kilian, reported in a statement on Sunday. “This requires continued rigid price management in get to finance the necessary investments in the long term,” he reported.

VW said it expected up to 900 personnel to choose for early retirement, although a small quantity in the 1000’s would pick out partial retirement, with out giving a precise figure.

Two enterprise sources told Reuters 3,000-4,000 positions would be reduce in link with the software to be applied at the 6 German plants of the key VW model, which now hire about 120,000 people today.

Older personnel who take early or partial retirement will have their pensions topped up, Handelsblatt reported.

VW is also extending a choosing freeze till the stop of the calendar year, the paper said. It experienced earlier only been in spot until the conclusion of the initial quarter. External hires can only be produced in spots these kinds of as facts technology and program, Handelsblatt mentioned.

As the automaker attempts to come to be much more of a tech organization modeled on Tesla, Volkswagen explained it was increasing the schooling finances by 40 million euros to 200 million.

VW explained in December it prepared to get to a deal with unions by the end of the to start with quarter to lessen expenses 5 % by 2023 to free up resources for electric powered vehicles and software program operations.

An current labor deal at VW procedures out pressured layoffs until the finish of the 10 years.

Reuters contributed to this report