BERLIN — Volkswagen Group plans to chop extra jobs in Germany by way of voluntary measures equivalent to partial retirement and buyout packages as a part of efforts to trim mounted prices.

The settlement with labor representatives may result in as many as 5,000 job reductions and about 500 million euros ($598 million) in restructuring bills, according to Handelsblatt, which reported the information earlier Sunday.

“Resulting from our excessive investments within the enlargement of electromobility and digitalization, Volkswagen was in a position to develop a pioneering function as a driver of automotive change,” VW’s personnel chief, Gunnar Kilian, mentioned in an announcement on Sunday. “This requires continued strict value administration with a purpose to finance the mandatory investments sooner or later,” he mentioned.

Kilian didn’t affirm the variety of jobs that might go.

Older staff who take early or partial retirement can have their pensions topped up, Handelsblatt mentioned.

VW can be extending a hiring freeze till the tip of the 12 months, the paper mentioned. It had beforehand solely been in place till the tip of the primary quarter. Exterior hires can solely be made in areas equivalent to data know-how and software program, Handelsblatt mentioned.

VW mentioned in December it deliberate to succeed in a take care of unions by the tip of the primary quarter to decrease prices 5 p.c by 2023 to liberate funds for electrical automobiles and software program operations.

An present labor deal at VW guidelines out pressured layoffs till the tip of the last decade.

Reuters contributed to this report.