Volkswagen aims to cut costs by 20% by 2028 as competition from Chinese carmakers intensifies.
Reports say plant closures are being considered as part of the restructuring.
Chief executive Oliver Blume and finance chief Arno Antlitz presented the plan to senior managers.
The goal is to secure stable profits despite falling sales, high costs and rapid automation.
An earlier overhaul already included 35,000 job cuts by 2030 and €10bn in planned savings.
The company says previous measures have produced savings in the double-digit billion-euro range.
The pressure comes as the EU trade deficit with China continues to grow.
German carmakers remain deeply dependent on the Chinese market through joint ventures and local production.
Details on where the new savings will come from have not yet been announced.
