VW to cut 23,000 jobs in Germany

Volkswagen unveiled plans to cut 23,000 jobs in Germany to help achieve 3.7 billion euros ($3.92 billion) in annual savings by 2020 to turn around its core brand and help fund a shift to electric and self-driving cars following its emissions scandal.

The agreement foresees a 25 percent improvement in productivity at German plants, the company said at a news conference on Friday.

The so-called future pact, hammered out between both sides since June, aims to increase the brand's operating margin to 4 percent by 2020, from an expected 2 percent this year, the company said.