Volkswagen to cut 50,000 jobs by 2030
Volkswagen Group, a symbol of Europe's automotive industry, is undergoing one of the most severe crises in its history, Zamin.uz reported.
Faced with intensifying global competition and declining financial performance, the company's leadership has decided to cut nearly 50,000 jobs by 2030. This move is being viewed not merely as a cost-cutting measure, but as a strategic step necessary for the company's survival.
Oliver Blume, head of the concern, officially acknowledged that the current business model has become outdated and no longer aligns with emerging realities. According to an internal survey conducted by Manager Magazin, six out of nine members of Volkswagen's management board consider the current situation to be dangerously threatening the company's existence.
The remaining members described the situation as very serious, though none spoke about stability. According to the plan, the main reductions will affect the Volkswagen brand itself, covering approximately 35,000 employees.
By the end of 2026, the workforce is expected to be reduced to 19,000 people. Notably, as of now, nearly 28,000 employees have already signed voluntary agreements to leave the company.
These developments are expected to deliver a serious blow to the German economy, especially since the company recently, for the first time in its 88-year history, was forced to shut down its plant in Dresden. Alongside workforce reductions, production capacities will also be significantly scaled back.
By 2030, vehicle production volume at European plants is projected to drop to 500,000 units per year. A similar indicator has been set for the Chinese market.
As a result, Volkswagen will produce nearly one million fewer vehicles annually on a global scale. The company's financial reports reflect the depth of the crisis.
According to results for the first half of 2026, Volkswagen's net profit fell by 28.4% to 1.56 billion euros. Operating profit declined by 14% to 2.5 billion euros.
Delivery figures also dropped by 4%. The main causes of the crisis can be identified as follows:
Growing competition from local electric vehicle manufacturers in the Chinese market.
A sharp decline in sales volume in North America.
Challenges in the transition from traditional internal combustion engine vehicles to electric vehicles.
High production costs and logistical issues.
The Volkswagen brand also holds significant importance for the Uzbek market. Although brands like BYD and Chevrolet dominate in our country, interest in Volkswagen models has consistently remained high.
The global crisis may now also affect customers in Uzbekistan.
