Volkswagen said its group, including all brands and subsidiaries, must undergo a deep transformation aimed at slashing costs through technology. The executive board has spent months shaping a realignment plan, which the Supervisory Board has now approved. Implementation will begin immediately, marking a overhaul the automaker has pursued in years. The move follows a year of profit pressure and a slowdown in diesel sales.

German weekly Manager Magazin reported the overhaul could eliminate as many as 100,000 positions across the group in its global network, a figure Volkswagen declined to confirm. The automaker previously committed to cut 50,000 jobs in Germany by 2030, a move aimed at offsetting slowing sales and rising electrification costs. The new plan signals a willingness to deepen workforce reductions if needed.

Investors will watch the cost‑cutting drive for its impact on margins, as labor savings could partially offset the hefty capital outlays required for electric‑vehicle development. A restructuring of this scale also raises short‑term risks, including potential strikes and supply‑chain disruptions in Europe. The announcement confirms Volkswagen’s resolve to reshape its cost base amid intensifying competition.