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Audi announces 9,500 job losses as company focuses on electric cars

Wednesday, 27 November, 2019 - 13:24

The German automaker Audi, a subsidiary of the Volkswagen Group, announced on Tuesday that it intends to cut 9,500 by 2025 in Germany. 

The company hopes to achieve 6 billion euros in annual savings by 2029 as a result of the cuts, which represent 15 percent of Audi’s 61,000 workforce in Germany and 10 percent of its employees worldwide.

The billions saved “will be reinvested in promising projects such as electrification and digital transformation” Audi said in a statement, adding that it also planned to create 2000 “new expert positions” in areas related to electric mobility and the connected car, which will be recruited internally as a priority.

“The company must become lean and fit for the future, which means that some job profiles will no longer be needed and new ones will be created,” Audi said

“The works council [“shop-floor” organisation representing workers] and the company’s management have agreed to cut up to 9,500 jobs until 2025. This will take place along the demographic curve – in particular through employee turnover and a new, attractive early-retirement programme. An equivalent percentage staff reduction will take place in management.”

Peter Mosch, chairman of Audi’s works council, said: “We have reached an important milestone: the jobs of our core workforce are secure. The extension of the employment guarantee is a great success in difficult times.”

The decision comes after a difficult year for Audi’s parent company VW, marked by low sales and the arrest of its former CEO, Rupert Stadler, for falsifying tests meant to measure the emissions of pollutant gases by VW cars. The company was also fined 800 million euros over the so-called dieselgate scandal.

The job cuts come less than a fortnight after rival German luxury carmaker Mercedes-Benz said it intended to cut more than 1,000 jobs by the end of 2022 as it struggles to meet new tougher emissions targets.

 


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