Volkswagen plans a 20% reduction in administrative personnel costs as part of a cost-cutting initiative targeting €10 billion ($10.8 billion) in savings by 2026. The emphasis is on cost reduction rather than layoffs, according to Gunnar Kilian, VW’s board member for human resources. The strategy capitalizes on a “demographic curve” with the upcoming retirement of the baby boomer generation. The company aims to improve its margin, which stood at 3.4% in the first nine months of 2023, to 6.5%, aligning with its shift toward electric vehicles. The details are expected to be finalized by December.