Audi will cut 7,500 jobs in Germany
Audi continues to optimise costs - the company will cut 7,500 jobs in Germany by 2029 to increase "productivity, speed and flexibility" at its Ingolstadt and Neckarzulm plants. The move is expected to save more than €1bn annually.
Here's What We Know
Despite the cuts, Audi will invest €8bn in its German operations by the end of the decade. Part of the money will go towards the production of a new entry-level electric car in Ingolstadt, as well as digitalisation and the integration of artificial intelligence at the Neckarzulm plant. In addition, the company is setting up a €250 million "future fund" to help develop new platforms for electric cars.
Audi attributes these decisions to difficult economic conditions, competitive pressures and political instability. Among the main concerns are uncertainty about the future of the EV market in the US, competition with Chinese electric cars and possible US customs barriers that could force Audi to move production to America.
Who is at risk of layoffs?
Audi has cut 9,500 manufacturing jobs starting in 2019. The new cuts will affect administration, developers and related areas.
At the same time, the company has extended its job security agreement with the works council at its German plants until 2033. The automaker announced last month that it would focus on producing more premium and expensive models, even if it means fewer of them.
