Audi Plans to Cut 7500 Jobs in Germany by 2029 as Part of a New Larger Restructuring Plan
Per recent announcements, Audi anticipates reducing its workforce by 7,500 employees from Germany by 2029 while undertaking audits to the business structure. These job cuts will mostly affect administrative and development positions, allowing the company to achieve mid-term savings of approximately €1 billion annually.
However, Audi and Volkswagen Group, its parent company, will continue to implement their industry developments. Moreover, the auto-maker will maintain its spending on new model designs, earmarking 8 billion Euros for use in German factories. “With these reductions we aim to make the company more agile and more efficient,” said Audi CEO Gernot Deller, while also ensuring that the company intends to streamline business operations and structures.
Audi’s History of Job Cuts
This is not the first time, or even the first recent time, that Audi has decreased its personnel numbers. To make savings in the company’s budget for electric car production in 2019, Audi wiped out 9,500 jobs. That self-imposing strategy backfired when results did not come out, which is how the company found itself slashing jobs yet again in under five years.
This decision comes in the light of financial difficulties, as Audi’s operating margin fell over 30% to 4.5% in the first three quarters of 2023 from 7% in the previous year. Important markets not meeting sales expectations coupled with the Brussels plant closing cost have hurt the company finances even more.
Volkswagen Group’s Massive Workforce Reduction
Audi’s job cuts are part of a larger cost containment measure within the Volkswagen Group as it intends to slash its total headcount by almost 48,000 in the following years.
Volkswagen: 35,000 job cuts
Cariad (VW software division): 1,600 job cuts
These layoffs are meant to slash expenses and enhance the Group’s position in the more competitive global automotive industry.
With the restructuring of its operations, the company intends to continue investing in R&D and EVs which poses a challenge given its operational and financial difficulties.
