Volkswagen aims to cut costs by 20% by 2028 as competition from Chinese carmakers grows.
Reports say plant closures are possible as part of the restructuring.
Chief executive Oliver Blume and finance chief Arno Antlitz presented the savings plan to senior managers.
The goal is to secure stable profits despite falling sales, high costs and rapid market changes.
The group already launched a major overhaul that will cut 35,000 jobs by 2030.
It expects billions of euros in savings from these measures.
Volkswagen said earlier reforms have already produced double-digit billion-euro savings.
Pressure is rising as the EU’s trade deficit with China continues to grow.
German carmakers remain deeply tied to the Chinese market through joint ventures.
Further details on where the new cuts will fall have not been announced.
