Volkswagen will cut 35,000 jobs by 2030...The closure of the factory is withdrawn.

German carmaker Volkswagen's labor and management, which has entered emergency management, have agreed to cut more than 35,000 jobs in Germany by 2030, local media reported.

This represents 30% of the total 120,000 German employees.

Labor and management said they decided to reduce staffing through "socially acceptable" means such as retirement programs and shorter working hours for old age instead of forced layoffs.

It also decided not to close the plant immediately and to convert the relatively small Osnabrück and Dresden plants into autonomous driving centers or to sell them.

The two plants will stop making cars until 2027 at the latest.

Volkswagen says production capacity in Germany will be reduced by 734,000 units a year.

Accepting the union's proposal, the management decided to raise wages by 5%, but set aside the increase as the company's fund to reduce costs.

Labor and management also agreed to reduce annual leave allowances by 1,290 euros (about 1.96 million won) and eliminate some bonus items.

According to the labor-management agreement, the management has also decided to restore the employment security agreement.