Audi prepares to lay off thousands
Audi, the luxury car brand of the Volkswagen Group (VW), has announced that it will cut jobs in areas such as management and development in Germany by 2029.
AA
In a statement from Audi, it was noted that increasingly difficult economic conditions, competitive pressure, and political uncertainties have left the company facing major challenges, and that up to 7,500 people will be laid off.
The statement explained that the Audi Board of Management and the Works Council are negotiating a joint "future-proof" agreement to ensure that facilities in Germany remain ready for the future and competitive, and that the board and council have reached an agreement to reduce up to 7,500 jobs in indirect areas by 2029 with a sense of social responsibility.
With this agreement, the company aims to reduce its annual personnel costs by 1 billion Euros.
8 BILLION EURO INVESTMENT TARGET
Audi will invest a total of 8 billion Euros in its facilities in Germany over the next 4 years.
In addition, labor costs will be reduced by readjusting additional payments for employees covered by collective bargaining agreements.
Meanwhile, Audi also announced that the job security guarantee agreement at its facilities in Germany has been extended until the end of 2033.
NEARLY 10 THOUSAND PEOPLE LAID OFF IN 2019
Starting in 2019, Audi laid off approximately 9,500 people in production and significantly reduced capacity at two of its factories.
The German luxury car manufacturer is being negatively affected, particularly by weakening demand for electric cars. The company had previously decided to close its factory in Brussels.
Audi's parent company, Volkswagen, also launched a cost-cutting program in December 2024 that includes the layoff of 35,000 people.