By 2029, Audi, the German luxury carmaker, plans to reduce its workforce in Germany by 7,500 employees, which accounts for approximately 14% of its total workforce. The layoffs will predominantly affect the administration and development divisions, while factory workers will not be impacted, according to media reports. Over the next four years, the company aims to invest over $8 billion in its facilities across Germany.
Management and labor unions are working together to implement measures that will save around $1.1 billion annually. In the past six years, Audi has already reduced its workforce by approximately 9,500 employees to allocate resources for the electric vehicles division. Recently, the company has reported a 12% decline in sales.
Additionally, last week it was announced that redundancy programs at Volkswagen’s Cariad software unit will result in 1,600 job cuts by the end of this year. Cariad, founded in 2020, is the automotive software firm of the Volkswagen Group, created to develop and deliver integrated digital technology for the automaker’s brands. This move will render about 30% of its 5,900-strong workforce jobless as part of a transformation plan that was initiated two years ago. The focus is on increasing efficiency and enhancing performance at the software solutions firm, which is now reassessing its headcount.
Volkswagen (VW) is also considering the closure of some plants in Germany as part of its efforts to regain its competitive edge in Europe. This could lead to thousands of job cuts, as these plants currently employ around 120,000 workers.
