Volkswagen's chief executive welcomed a deal to slash jobs and reduce production capacity in Germany without the need to close factories, but the car giant's shares fell heavily on Monday.

Volkswagen shares were down 3% in early trade on Monday with analysts citing uncertainty about the automaker's cost-cutting deal with unions and likely headwinds in 2025. Friday's agreement, hailed by unions as a "Christmas miracle",

Volkswagen will undertake significant production changes and cut more than 35,000 jobs by 2030 to improve its financial situation.