Amid the struggles of the German automotive industry, Audi has decided to reduce 7,500 jobs by 2029. According to the daily Süddeutsche Zeitung (SZ), Audi’s labor and management have reached an agreement on restructuring measures, which include reducing office positions but excluding production jobs. Instead of layoffs, they plan to reduce jobs through voluntary retirement and have extended the employment stability agreement until 2033.
Audi employs 54,000 people in Germany, with approximately 30,000 in non-production roles. In 2019, Audi also introduced a major cost-saving program that cut 9,500 jobs. CEO Gernot Döllner announced an investment of 8 billion euros (approximately 13 trillion won) in German sites and plans to convert the Ingolstadt and Neckarsulm plants to electric vehicle production lines.
Audi has been underperforming compared to other subsidiaries under the Volkswagen Group, with sales dropping sharply not only in China but also in Germany. Last year, its German sales decreased by 21% and global sales fell by 12%, with Audi being overtaken for the first time by the American electric car company Tesla.
Earlier, Volkswagen’s labor and management agreed in October last year to reduce 35,000 of their 120,000 German employees by 2030 and to halt production at two out of their ten factories in Germany. Porsche, a sports car brand under Volkswagen, has also been pursuing restructuring efforts, aiming to cut 4,000 jobs by 2029.