Audi has announced plans to eliminate 7,500 jobs in Germany, which represents 8% of the carmaker’s global workforce. The decision comes as the German automotive industry grapples with “immense challenges,” including declining demand for electric vehicles and increased competition from Chinese manufacturers.
In a statement released on Monday, Audi cited the need to enhance “productivity, speed, and flexibility” as reasons for the job cuts, which are expected to be finalised by the end of 2029. The company, a subsidiary of Volkswagen, stated that “the economic conditions are becoming increasingly tougher,” highlighting competitive pressure and political uncertainties that present significant hurdles for the firm.
Gernot Döllner, chairman of Audi’s management board, reassured employees that there would be no compulsory redundancies until the end of 2033. He noted that the existing job security programme, which prevents mandatory layoffs, will be extended through that period, having previously been in effect only until the end of 2029. Instead, job reductions prior to 2029 are anticipated to result from voluntary resignations and contract expirations.
For decades, the automotive sector has been a key contributor to Germany’s industrial strength, but an economic downturn has led to decreased production levels in the country. Audi’s job cuts signify another setback for the struggling sector, which has faced challenges stemming from a slow transition to electric vehicles, fierce competition from China, diminished demand, and the looming threat of US tariffs.
As the industry adapts to these changing dynamics, Audi’s workforce reduction highlights the urgent need for innovation and resilience in the face of evolving market conditions.
Source: DW
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