Audi To Slash Up To 7,500 Jobs By 2029, See Which Departments Will Bear The Layoff Brunt

The reductions at Audi contributed to a broader wave of layoffs within the Volkswagen Group, bringing the total planned job cuts across the company to nearly 48,000.

Since 2019, Audi has cut around 9,500 production jobs, a move designed to redirect resources toward electric vehicle (EV) production and improve profitability by 9-11 per cent.

Source : Audi India

Volkswagen's luxury brand, Audi, announced plans to reduce its workforce in Germany by up to 7,500 positions by 2029, primarily in administrative and development departments.

The decision was finalised on Monday in an agreement between management and labour representatives and aimed to lower costs and improve financial efficiency of the automaker, reported Reuters.

Audi projected annual savings of €1 billion ($1.1 billion) as a result of these measures. Additionally, the automaker committed to investing €8 billion into its German manufacturing sites over the next four years.

Job Cuts Across the Volkswagen Group

The reductions at Audi contributed to a broader wave of layoffs within the Volkswagen Group, bringing the total planned job cuts across the company to nearly 48,000. Volkswagen has already initiated a cost-cutting strategy affecting 35,000 positions, while Porsche planned to eliminate 3,900 jobs. Meanwhile, VW’s software division, Cariad, intended to slash approximately 1,600 roles.

Since 2019, Audi has cut around 9,500 production jobs, a move designed to redirect resources toward electric vehicle (EV) production and improve profitability by 9-11 per cent.

However, the brand faced significant challenges in recent years. In the first nine months of 2024, its operating margin dropped to 4.5 per cent, down from 7 per cent during the same period a year earlier.

Weak sales in crucial markets and the financial strain of shutting down operations at its Brussels plant contributed to this decline. Audi is set to release its full-year financial results for 2024 on Tuesday.

EV Expansion and Labor Agreements

In an effort to bolster its EV lineup, Audi plans to manufacture a new entry-level electric model at its Ingolstadt plant and has been evaluating the possibility of producing another model at its Neckarsulm facility. This development offered some reassurance to German labour representatives, who have voiced concerns over automakers shifting EV production to lower-cost regions.

As part of its agreement, Audi extended its job security guarantee at its German facilities until the end of 2033. "The negotiations were tough, but always factual and solution-oriented... we had to make compromises to allow financial flexibility for additional investments," said Joerg Schlagbauer, head of the works council, in a statement.