18.03.2025 09:31
Audi plans to lay off 7,500 employees by 2029 in order to become faster and more efficient. However, it has been announced that an investment of 8 billion euros will be made in its factories in Germany. The company stated that the cuts in employment areas will not affect car production.
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The German car manufacturer Audi, part of the Volkswagen Group, is downsizing by 7,500 employees to become "faster, more agile, and efficient." On the other hand, the company will invest 8 billion euros in its factories in Germany. Audi announced that it will reduce its workforce by 7,500 by 2029. Along with financial cuts for employees, the company will save one billion euros annually in the medium term.
SOME UNITS HAVE BEEN CROSSED OUT
It was announced on Monday that Audi, which is part of the Volkswagen Group, reached an agreement after long and intense discussions between the company management and union representatives regarding the savings plans. The statement noted that a "socially responsible" agreement was reached to "increase production, speed, and flexibility." It was stated that the areas of employment that have been crossed out will not include car production but will be in "indirect areas" involving bureaucratic processes. At the beginning of the negotiations, the company management had proposed a reduction of 12,000 employees. Audi's Chairman of the Board, Gernot Döllner, stated regarding the savings plan, "Audi must be faster, more agile, and efficient. It is clear that this is not possible without personnel adjustments."
JOB SECURITY UNTIL 2033
According to the agreement, the job security valid until 2029 has been extended until the end of 2033. Gernot Döllner stated, "There will be no layoffs by the workplace until the end of 2033. This is good news for all employees during these difficult times for the entire economy." It was also announced that Audi will invest 8 billion euros in its facilities in Germany. Döllner indicated that they will "reposition Ingolstadt and Neckarsulm in a solid and flexible manner" within the framework of the transition to electromobility.
THE DOWNSIZING POLICY WILL LAST FOR YEARS
Xavier Ros, a member of the Board of Directors responsible for Human Resources, stated that layoffs will occur "in a manner consistent with the future requirements, focusing on team structure." It was noted that the first reduction of 6,000 employees at Audi will take place by the end of 2027, and the subsequent second reduction of 1,500 employees will occur by the end of 2029. According to the agreement reached between the company management and the union, workers who are members of the IG Metall union will receive bonuses starting from 2026. IG Metall Bavaria Regional Director Horst Ott stated, "Thus, the solidarity among employees, which supports each other, has been rewarded, ensuring that IG Metall becomes stronger and that collective bargaining agreements and good negotiation results are achieved."
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