FRANKFURT, May 22 (Reuters) - Volkswagen will realign production at its heavy-duty commercial vehicle brands MAN and Scania, sources said, as the group seeks to boost synergies between the two truckmakers.

Plans by Europe's largest automaker to rearrange production at MAN and Scania could cause MAN's workforce to shrink, though there are no plans for outright dismissals, sources familiar with the plans told Reuters on Friday.

VW and MAN declined comment. Sweden-based Scania didn't return calls seeking comment.

Wolfsburg-based VW is seeking to reduce costly overlaps in production at MAN and Scania factories in Europe and the plans could be finalized by as early as late May, the sources said.

Earlier this month, VW announced the creation of a truck holding company to combine the two brands, in a bid to address a long-standing criticism of its set-up.

(Reporting by Andreas Cremer, Irene Preisinger and Johannes Hellstrom; Editing by Harro ten Wolde)