Volkswagen has announced plans to cut 30,000 jobs worldwide with about 23,000 of the losses borne in Germany.
VW, still dealing with the aftermath of the emissions-cheating scandal, aims to rejuvenate its core brand, and develop new electric and self-driving cars.
VW says it will create 9,000 jobs as part of investments in new products.
The cuts should bring annual savings of €3.7bn (£3.2bn; $3.92bn) by 2020. VW and unions have been hammering out a plan to revive its fortunes since June.
The car giant - which employs 610,000 people in 31 countries - wants to increase the brand's profit margin from 2% to 4% and to do this it will need to improve productivity at its German plants by 25%.
Volkswagen chief executive, Matthias Mueller, said it was "the biggest modernisation programme in the history of the group's core brand".
"The VW brand needs a real shake-up and that is exactly what the future pact has turned out to be," he added.
Volkswagen has been battling a crisis caused by its attempts to dodge strict US emissions limits.
It was revealed in the US last year that VW's diesel cars were fitted with...Read more...