Volkswagen aims to cut costs by 20% by 2028 to stay competitive against Chinese carmakers.
Reports say plant closures remain an option.
Chief executive Oliver Blume and finance chief Arno Antlitz outlined the savings plan to senior managers.
The company is reacting to weak sales, high expenses and rapid market changes.
An earlier overhaul already included 35,000 job cuts by 2030 to save €10bn.
Volkswagen says it has achieved savings in the double-digit billion-euro range so far.
New data shows the EU trade deficit with China rose to €359.3bn in 2025.
German carmakers remain deeply linked to the Chinese market through joint ventures.
The group will present more details with its annual results on 10 March.
