German carmaker Volkswagen's deal with unions — that would see 35,000 future job cuts in Germany — is "good news" for the company, its CEO said Sunday.

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

VW and labor unions agreed on job cuts, capacity reductions, and production shifts to maintain German factories while tackling declining demand for electric vehicles.

It outlines a major cost-cutting plan that includes 35,000 job cuts in Germany and the closure of multiple factories. Volkswagen aims to reduce domestic production capacity by 734,000 vehicles annually,

Volkswagen on Friday said it had agreed with unions to cut more than 35,000 jobs at its German sites by 2030 in a socially responsible manner, which would help achieve more than 15 billion euros ($15.

After extensive negotiations, the German labor union IG Metall and the management of Volkswagen have reached an agreement. VW has decided not to close German factories, but it will significantly reduce its workforce.