The Lufthansa Group will reorganize its management structure to cut costs and boost development of its low-cost Eurowings brand,

the company announced Wednesday. The structure, effective Jan. 1, moves Lufthansa German Airlines head Karl Ulrich Garnadt to the top of Eurowings. He also will lead airline services, “which will include further airlines and business units to be developed,” according to Lufthansa. Harry Hohmeister will leave his role as CEO of Swiss International Air Lines to lead commercial management of the Lufthansa Group’s hubs and to manage Lufthansa, Swiss and Austrian Airlines. The changes will cut management positions by about 15 percent and boost annual profits by about €500 million ($564 million), according to Lufthansa.