Volkswagen Launches Biggest-Ever Restructuring: Cuts One-Third of Board, Consolidates Core Functions to Cut Costs and Boost Efficiency

Volkswagen Group recently announced the launch of its largest-ever organizational restructuring. The plan includes reducing the number of board members across its core brands from 29 to 19 and centralizing control over R&D, procurement, and production under the group headquarters, ending independent operations by individual brands. This move is expected to generate cumulative savings of €1 billion by 2030. Additionally, more than 20 global plants will be consolidated into five regional management centers, with China—due to its strategic importance—remaining directly managed by the group. In response to declining sales and its first quarterly loss in five years (with net profit plunging by 61.5%), Volkswagen also plans to cut 35,000 jobs in Germany and reduce salaries and bonuses by 2030, aiming to save approximately €4 billion annually. Furthermore, the group intends to launch over 20 new models in China starting in 2026, with its total lineup of new energy vehicles reaching 50 models by 2030—including around 30 all-electric vehicles.