VW to save €1 billion with brand restructuring - Volkswagen slashes 35,000 jobs in €1B cost-cutting overhaul by 2030
Volkswagen Group is overhauling its mass-market brands to cut costs and streamline operations. The restructuring aims to save billions over the next few years by consolidating key divisions. As part of the plan, around 35,000 jobs in Germany will be eliminated by 2030.
The company will merge its production, technical development, and procurement divisions into a single Groupme Board. This new structure is set to save roughly €1 billion by 2030 while speeding up decision-making. The board will also reduce the number of executive positions across the group.
Brands like Škoda, Seat/Cupra, and Volkswagen Commercial Vehicles will each have just four board members—cutting the total number of seats by about one-third. The changes align with CEO Oliver Blume’s broader cost-cutting strategy, which began with a major programme at the core VW brand.
The new system will take effect in January 2023, with full implementation expected by summer 2023. The company has not yet named the CEO of the newly formed Brand Identity Core Board of Management.
The restructuring will reduce costs and simplify management across Volkswagen’s mass-market brands. By 2030, the company expects €1 billion in savings alongside a leaner leadership structure. The changes will also result in significant job cuts in Germany over the next six years.
