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Volkswagen plans to cut about 3,000 white-collar jobs in Germany through the end of next year as the carmaker grapples with the costs of its emissions test-rigging scandal, two sources at the carmaker told Reuters.

Steps that Volkswagen will use to reduce the number of office jobs include moving workers more quickly into early retirement and assigning staff to other departments, the sources said today, confirming a report by news agency dpa.

Earlier this week, a Chattanooga plant spokesman said the $600 million expansion here was ongoing to produce a new sport utility vehicle and there were no plans for job cuts at the factory.

The local assembly plant employs 2,500 people, officials said.

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