'Volkswagen may cut 2,500 jobs per year via early retirements'

Berlin: Volkswagen may cut up to 2,500 jobs per year over 10 years by moving workers into early retirement, Handelsblatt reported on Wednesday, citing Bernd Osterloh, chief of the carmaker's influential works council.

Top management and labor leaders are locked in "tough" talks on future strategy and cost savings at the troubled VW brand, Osterloh said in an interview with the German business daily published on Wednesday.

Labor leaders, who hold about half the seats on VW's supervisory board, are seeking to avert outright dismissals at Europe's largest automaker and instead back voluntary steps to reduce headcount via early retirements, Handelsblatt said.

"The jobs of VW workers are safe," the newspaper quoted Osterloh as saying.

VW, grappling with the impact of its diesel emissions scandal, will also need to hire new staff in software development and mobility services, Osterloh said, without disclosing details.