VW to cut 3,000 office jobs in Germany by end 2017: sources

A logo of Volkswagen is pictured on the wall at the 86th International Motor Show in Geneva, Switzerland, March 1, 2016. REUTERS/Denis Balibouse

BERLIN (Reuters) - Volkswagen VOWG_p.DE plans to cut about 3,000 office jobs in Germany by the end of 2017 as the carmaker strives to offset the cost of its emissions test-rigging scandal, two sources at the company said on Thursday.

Europe’s largest automaker is cutting investment by 1 billion euros ($1.1 billion) in 2016 compared with last year and aims to shed hundreds of temporary jobs and cease unprofitable models in a bid to reduce costs in the wake of the scandal.

VW employs about 120,000 workers at its Western German plants and its financial services division, with about a third of those being office positions.

The sources did not give more specific information about the job losses. German news agency dpa first reported the cuts.

“The Volkswagen brand has initiated an efficiency program that is affecting all areas, including personnel costs,” a VW spokesman said.

Costs can be cut by reducing temporary work contracts, filling vacancies internally and making fewer hirings, the spokesman added, declining to be more specific.

VW’s works council did not return calls seeking comment.

Reporting by Andreas Cremer; Editing by Arno Schuetze and Mark Potter