Volkswagen on Friday announced sweeping changes to its German operations, including more than 35,000 future job cuts and sharp capacity reductions in a last-gasp deal between Europe's top carmaker and unions to avert mass strikes.

While hailed as a Christmas miracle by union leaders, the agreement forces significant concessions from the workforce, including a wage freeze until 2027, reduced bonuses, and the "socially responsible" elimination of over 35,000 jobs by 2030, primarily through early retirement and attrition.

Volkswagen’s employee representatives say they have reached a wage deal. The deal will ward off management proposals for plant closings in Germany and bars involuntary layoffs through 2030.