Early or partial retirement will be offered to older employees of Carmaker, Volkswagen (VW) as the company plans to cut up to 4,000 jobs at its plants in Germany.

According to the Reuters news agency, which cited the company sources, this development will cost several hundred million euros.

In a statement released by Volkswagen there was much emphasis on the age of its staff. It has agreed on a plan with worker representatives to make partial retirement available to those born in 1964, while offering early retirement to those born from 1956 to 1960.

Still on the pattern of retirement Volkswagen said it expected up to 900 workers to opt for early retirement, while a number in the low thousands would choose partial retirement, without giving a precise figure.

Speaking to Reuters, the two company sources disclosed to Reuters that 3,000-4,000 positions would be cut in connection with the programme to be implemented at the six German plants of the main VW brand, which now employ about 120,000 people.

Handelsblatt newspaper, which earlier reported on the plan, had said the company would cut up to 5,000 jobs.