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.

Volkswagen has previously threatened closing as many as three factories in Germany for the first time in its history, amid warnings from its finance chief the company has “a yea

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

Volkswagen is cutting manager salaries by 10% and reducing jobs by over 35,000 to address production capacity and avoid strikes.