Volkswagen, after months of negotiations with labour representatives, has agreed to a plan of cutting down 30,000 jobs by 2020.
According to the Handelsblatt business daily, the move comes as an effort to recover its losses from the dieselgate emission scandal which came into view earlier in September 2015.
By this move, the German auto giant aims to up its savings to €3.7 billion annually.
Most of the job losses are aimed at the Volkswagen plants in Germany followed by North America and Brazil the report said.
German units will face around 23,000 cut shorts by 2025 from a total of 282,000 employments provided by the company as of now.
Most of these lay-offs will come from employees who are retiring, eliminating the need for forced firing.
Facing its first loss last year in over two decades, the company aims the move at safeguarding its future investment in producing electric cars.
There are no plans to shut down any of its current factories and offices.
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