Layoffs: Audi Considering Job Cuts Outside Production, Says Report

Overall, the firm is planning to reduce its workforce by 15 per cent, while in Germany itself, the decision will impact 4,500 indirect jobs

Automaker Audi is planning to cut down its workforce in the medium term, media reports said. The German firm intends to layoff individuals outside of production, placing thousands of positions at risk, the Manager Magazin reported on Thursday.

Citing the news, Reuters reported that these job cuts are going to focus on the ‘indirect jobs’ at the automaker, like those in the field of development. This could eventually impact more than 2,000 jobs in the area.

Overall, the firm is planning to reduce its workforce by 15 per cent, while in Germany itself, the decision will impact 4,500 indirect jobs.

The report said that Audi is currently involved in negotiations with worker’s representatives, however, the company, a subsidiary of auto giant Volkswagen, didn’t share any details on the number of jobs to be affected by the layoffs.

Notably, Audi clocked a major fall in its profit in the third quarter, mainly due to the elevated costs associated with the likely closure of its plant in Brussels.

Parent company, Volkswagen, last month announced that it plans to shut down at least three factories in Germany, effectively cutting down jobs for tens of thousands of employees. Further, the automaker said that it plans to downsize its remaining plants as part of a detailed overhaul. 

This decision came after the company tried to find a solution with unions for weeks in negotiations to revamp the business and reduce costs.

Meanwhile, Tesla earlier this year in April announced job cuts for over 6,000 employees in Texas and California in order to manage the declining demand and increasing competition among electric vehicle (EV) manufacturers. This followed a reduction of over 10 per cent in its global workforce.

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