Volkswagen Cuts One-Third of Its Board Members in Major EV-Driven Restructuring

[Corporate Restructuring] Volkswagen Group announced it will reduce the board members of its core brand by one-third, aiming to save 8 billion euros by 2030.

Core Move: Board Streamlined to 19 Members, Key Functions Centralized at Headquarters

The board of Volkswagen's core brand, currently comprising 29 members, will be reduced to 19 members by summer 2026, with each brand retaining only 4 directors. The three key functions—R&D, procurement, and production—will no longer be decentralized across brands but will instead be centrally managed from the Wolfsburg headquarters.

Key Figures: 8 Billion Euros in Savings by 2030, Share Price Jumps 4.8%

This restructuring marks one of the largest organizational overhauls in Volkswagen’s history, projected to deliver cumulative cost savings of 8 billion euros by 2030. Following the announcement, Volkswagen’s share price rose 4.8% in a single day.

Strategic Driver: Intense Pressure from EV Transition Forces Radical Reform

Facing six consecutive years of trailing behind Toyota in sales, an anticipated first net loss in five years in Q3 2025, and massive investments required for electrification, Volkswagen is accelerating its “slimming down” efforts. Since 2024, the company has already initiated measures including closing German plants and cutting 35,000 domestic jobs. The current board reduction signals that the reform has entered its most challenging phase.