It comes as Volkswagen, which is Europe’s biggest carmaker, faces plunging demand for its vehicles in Germany and China, its most profitable market.
At the same time, sales of new electric models have stalled in the bloc as their relatively high price compared to petrol equivalents remains a barrier to uptake.
Executives at the carmaker warned earlier this week it could be forced to consider closing factories in Germany, where it employs more than 300,000 people, for the first time in its history.
Unions called the announcement a “black day” for the company as its powerful works council threatened “fierce resistance” to the plans.
Bosses are also planning to end a job security programme, originally scheduled to run until 2029, which would have protected roles in Germany.
Oliver Blume, the Volkswagen chief executive, said this week: “The economic environment has become even tougher and new players are pushing into Europe. Germany as a business location is falling further behind in terms of competitiveness.”
The carmaker is looking to save €10bn (£7.6bn) as it haemorrhages market share in China. In Europe, meanwhile, it is facing an influx of new rivals such as China’s BYD, as well as Elon Musk’s Tesla.
Thorsten Groeger, of the IG Metall Union, warned Volkswagen’s planned cubacks were “short-sighted” and “highly dangerous”, adding it “risks destroying the heart of Volkswagen”.