Audi to cut 7500 jobs in Germany by 2029

The carmaker has also said that it was investing a total of 8 billion euros in its German sites in the coming four years.

Audi has announced that it will cut 7,500 jobs in Germany by 2029 in areas like administration and development. This was agreed to by management and labour representatives.

The planned layoff measures should save Audi 1 billion euros ($1.1 billion) per year in the medium term. The carmaker has also said that it was investing a total of 8 billion euros in its German sites in the coming four years.

The job cuts by Audi bring layoffs across the Volkswagen Group to just under 48,000. VW has announced a cost-cutting programme involving 35,000 job cuts, Porsche has plans to cut 3,900 jobs, and software unit Cariad aims to slash around 1,600 jobs. Audi has already cut 9,500 production jobs since 2019. This it said has helped free up billions of Euros to fund the shift to EVs and increase margins from 9 to 11 percent.

Audi as a brand has also fared poorly in recent years. Operational margins went down from 7 percent to 4.5 percent in the first 9 months of 2024. This was due to weak sales and the cost of ceasing production at the Brussels plant.

Audi is planning to make an entry-level EV at the Ingolstadt plant and is also considering a further model at the second plant in Neckarsulm. This it is said, came as a sign of relief for German labour representatives, who were nervous about carmakers opting to produce EVs in cheaper countries.

A job security guarantee agreement at its German sites was extended to the end of 2033, Audi said.

Joerg Schlagbauer, head of the works council, said in a statement, "The negotiations were tough, but always factual and solution-oriented... we had to make compromises to allow financial flexibility for additional investments."

Source: Reuters