The German automotive giant Volkswagen has declared that its core brand division will slash management roles and consolidate production platforms, with the goal of achieving cost savings of 1 billion euros by 2030. The specific strategies involve trimming the number of board members from 29 to 19 by the summer of 2026. In the future, each brand will have four board members, and functions like development will be managed uniformly by the headquarters.

Simultaneously, Volkswagen is set to streamline its organizational framework by amalgamating over 20 factories operating worldwide into five production regions. It is anticipated that by 2030, Volkswagen will reduce its workforce in Germany by 35,000 positions. The anticipated cost savings encompass 600 million euros in labor expenses and 400 million euros through enhanced production efficiency. This overhaul is not merely aimed at 'cost-cutting'; it also seeks to propel Volkswagen's shift towards electrification and digitalization, revamp its management framework, and establish a more nimble and efficient operational paradigm.