The profit margin at its core VW brand slipped to 3.8% previous year, down from 4.2%, as higher investments into electric cars and challenges getting combustion-engined vehicles certified ate into profits. "Volkswagen is to become more efficient and agile and a more attractive and modern employer, especially in administration", said Ralf Brandstätter, Chief Operating Officer of the Volkswagen brand.
A technician works on a Volkswagen Tiguan with TDI diesel engine during its final assembly at the Wolfsburg Volkswagen plant.
The new cost cutting drive is a continuation of Volkswagen's 3 billion euros Zukunftspakt savings plan.
Meanwhile the Wolfsburg-based firm said it would increase investments in "future topics" like battery-powered cars and automated driving over the same period, from the 11 billion euros ($12.4 billion) announced in November to some 19 billion.
At the same time, VW will create 2,000 new software jobs, as well as electronics positions in technical development, it said.More news: San Diegans indicted in nationwide college admissions scandal
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"We will significantly step up the pace of our transformation so as to make Volkswagen fit for the electric and digital era".
German automaker Volkswagen say it will eliminate up to 7,000 jobs by 2023.
The company is pivoting to electric vehicles as it seeks to comply with new limits on carbon dioxide emissions in Europe, and a push by China for more low-emission vehicles.
"Volkswagen is seeking to provide individual mobility for millions of people for years to come - individual mobility that is safer, cleaner and fully connected", said the official. Net profit for the year rose 6 per cent to 12.2 billion euros.