Volkswagen plans to lay off 5,000 employees

German newspaper Handelsblatt reported on Sunday that the automaker Volkswagen plans to lay off 5,000 employees in Germany through early or partial retirement for older employees in a move that could cost 500 million euros (598 million dollars).

The newspaper quoted a spokeswoman for the company as confirming the agreement on the plan with the Workers Council, including the provision of partial retirement for those born in 1964 and early retirement for older employees.

Volkswagen was not immediately available for comment.

The newspaper, citing company sources, reported that Volkswagen has allocated 500 million euros for the plan because it intends to compensate employees who will leave their jobs by giving them increases in retirement benefits, although it will save billions in the long term.