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Recently Audi began planning to reduce 7,500 positions in Germany throughout the next nine years through administrative and development department cuts. Under an agreement with employee representatives, the company made final decisions that join other Volkswagen Group restructurings to reduce their workforce by about 48,000 people across brands.
The company aims to save €1 billion per year and still invest €8 billion in its German factories throughout the next four years. Since 2019 Audi eliminated 9,500 workers from its operations before cutting more jobs to prepare for electric vehicle manufacturing despite financial performance dropping. Between January and September of 2024, the company’s operating income dropped to 4.5 percent from the initial 7 percent margin recorded in the same period twelve months ago.
Even with the staff reduction Audi will maintain its employment security at all German plants until 2033 and prepare for production of a basic electric vehicle at Ingolstadt. “Audi’s discussion sessions became demanding projects but stayed focused on data-driven problem-solving solutions” explained Joerg Schlagbauer head of the works council who added, “We accepted financial limits to create space for new business projects“. The company will present its complete financial performance for 2024 on Tuesday.
