Audi will reduce its workforce in Germany by up to 7,500 jobs by 2029, as part of a cost-cutting initiative. The Volkswagen-owned company announced the measures, which it expects to save the firm 1 billion euros (£842.5 million) per year in the medium term.
Audi cited increasingly challenging economic conditions, competitive pressures, and political uncertainties as factors necessitating the cuts.
The company will invest 8 billion euros (£6.7 billion) in its German sites over the next four years. Audi plans to produce a new entry-level electric model at its Ingolstadt plant and is considering producing another model at its Neckarsulm site.
Audi’s chairman, Gernot Döllner, stated that the company is preparing its Ingolstadt and Neckarsulm plants for the transition to electric mobility and that personnel adjustments are necessary.
The planned cuts at Audi bring the total job reductions across the Volkswagen Group to nearly 48,000. Volkswagen recently announced a cost-cutting programme involving around 35,000 job cuts. Porsche plans to cut 3,900 jobs, and software unit Cariad aims to reduce its workforce by around 1,600.
Audi’s operating margin decreased to 4.5% in the first nine months of 2024, compared to 7% in the same period the previous year, due to weak sales and the costs associated with the closure of its Brussels plant. Audi previously reduced its production workforce by approximately 9,500 since 2019.
Last month, Audi’s factory in Brussels ceased production, resulting in the loss of 3,000 jobs. The company attributed the closure to a decline in global demand for high-end electric SUVs, which affected demand for its Q8 e-tron, and to long-running structural issues at the factory, including high logistics and production costs. Czech car manufacturer Skoda has also announced plans for job reductions.
Source: Daily Mail
