Audi job cuts: Automaker to lay off nearly 7,500 employees in Germany

The premium brand of Volkswagen AG, Audi, has announced plans to lay off nearly 7,500 officials in Germany by 2029, reported Bloomberg.

According to the report, job cuts have emerged as a solution for the automaker to bolster profitability amid declining sales. These reductions account for approximately 14 per cent of the carmaker's German workforce.

It is noteworthy that this layoff will not affect factory workers. The report highlighted that the company is poised to invest around €8 billion into its operations.

Addressing the jobs cut in Ingolstadt on Tuesday, Audi Chief Executive Gernot Döllner, acknowledged the rising pressure in the automobile industry.

“The pressure to change is at an all-time high, with competition that has dramatically evolved,” he said.

Amidst the slump, Oliver Blume, the CEO of Volkswagen, has been a key player in driving cost-cutting measures across the company, in order to remain in the competition with other brands.

After these jobs cut, the total number of layoff employees across the Volkswagen brand jumped over 40,000. Notably, Audi vehicle deliveries declined by 12 per cent globally in 2023, with struggles in markets like China.

Future plans and strategy

Despite the job reductions, Audi plans to launch ten new models in the United States by the end of this year, where its sales dropped by 14 per cent in 2024.

In China, Audi has begun production of the Q6L e-tron electric SUV at its Changchun facility in collaboration with local partner FAW. Additional models are set to be manufactured there from mid-2025 as part of the company’s strategy to regain lost ground in the world's largest automotive market.

Additionally, Audi is planning to introduce ten new plug-in hybrid vehicles, acknowledging shifting consumer demand and slower-than-expected adoption of fully electric models.

“The future of our portfolio is electric, but we need flexibility,” Döllner stated, indicating that hybrid vehicles will play a crucial role in Audi’s short-term strategy.

(With inputs from Bloomberg)