Audi has announced that it will cut 7,500 jobs by 2029. The company notes that this will help it save about €1 billion per year in the medium term.
The cuts will affect administrative units and departments involved in development.
Audi said that the cuts plan has already been agreed upon with the works council representing the interests of employees. For the rest of the company’s employees, job security will be extended until 2033.
Audi has become the latest automaker to announce cuts in the face of declining demand, rising costs, increased competition with Chinese companies and other difficulties. Earlier, Volkswagen announced plans to cut 35,000 jobs, although mainly not through layoffs, but by refusing to hire new employees to replace those retiring or leaving. Porsche is also cutting 3,900 employees. Thus, the overall cuts plans in the VW group of companies, which includes Audi, have already reached 48,000 jobs. Audi itself has already laid off 9.5 thousand employees since 2019, and at that time this affected production, not administrative departments.