Layoffs Update: The company has prepared for a big layoff. The jobs of thousands of people are at risk at once.
Layoffs Update: Premium car manufacturer Audi has recently announced a big layoff. The company said that it will cut 7,500 jobs in Germany by 2029 (Layoffs News). This is about 8 percent of Audi’s workforce worldwide. The company is currently facing many challenges. These include a decrease in demand for electric vehicles in the country and increasing competition from China.
Changing auto sector
The manufacturer said that the purpose of the cuts is to increase productivity, speed and flexibility in its domestic factories. Audi, a subsidiary of Volkswagen, said in a statement that economic conditions are becoming increasingly difficult and competitive pressure and political uncertainties are posing huge challenges to the company.
The troubled auto sector of Europe’s largest economy is currently badly affected by the growing interest in electric cars, tough competition from local rivals in key market China (China News) and weak demand.
Which departments will be affected?
Audi said that this cut will be done in departments like administration and development and it will be well managed. The auto company has about 88,000 employees worldwide, of which 55,000 work in Germany. By cutting jobs, Audi aims to save one billion euros (1.1 billion dollars) every year.
Audi will make a big investment
The carmaker said that it plans to invest about eight billion euros in its two largest plants in Germany, Ingolstadt and Neckarsulm. Through this, electric vehicles will be promoted. This will include developing a new electric model in the entry-level segment as well as investing in AI.
Audi has suffered heavy losses due to the lack of demand for electric vehicles and in February it closed its plant in Belgium. It employed about 3,000 people and made high-end electric vehicles. The car manufacturer’s electric vehicle deliveries fell 8 percent year-on-year to about 164,000 in 2024. Deliveries in the Chinese market have fallen by about 11 percent. Meanwhile, Audi’s parent company Volkswagen announced in December that it would cut 35,000 jobs in Germany by 2030.
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