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Audi, the luxury vehicle manufacturer operating under the umbrella of Volkswagen AG, has recently announced plans to lay off around 7,5000 officials in Germany by 2029. These job cuts will be in areas like administration and development, as per Reuters report. This is the automaker's attempt to cut costs in the production of vehicles. Specifically, it should save the manufacturer around 1 billion euros per year in the medium term.
The layoff will not affect factory workers. However, it accounts for around 14 per cent of the automaker's German workforce. Despite the workforce reductions, Audi plans to invest 8 billion euros in its Ingolstadt and Neckarsulm to aid the production of EVs and artificial intelligence initiatives.
Also Read: Renault Car Prices To Increase By Up To 2 Percent From April 2025
The automaker employs approximately 88,000 people globally and has recently shut down a Belgian plant that employed 3,000 workers. This came while the brand faced slow EV sales. In 2024, the brand's electric vehicle sales declined by 8 per cent year-on-year to 164,000 units. Similarly, the sales of the brand in its largest market, China declined by 11 per cent.
The job cuts highlight the wider challenges faced by Germany's automotive industry, which is struggling with a gradual shift to electric vehicles, heightened regulatory demands, and growing global competition.
In December 2024, Volkswagen, the parent company of Audi, announced its plan to reduce 35,000 jobs in Germany by 2030. As car manufacturers adapt to evolving market trends, restructuring the workforce is becoming a key strategy for balancing cost efficiency with future innovation.
Meanwhile, Audi also plans on launching 10 new models in the US by the end of the year. In China, the brand has initiated the production of a Q6L e-tron electric SUV. This plant will also become the site of manufacturing for multiple other models of the brand by mid-2025. All of this is expected to contribute in gaining back the lost market share.
The layoff will not affect factory workers. However, it accounts for around 14 per cent of the automaker's German workforce. Despite the workforce reductions, Audi plans to invest 8 billion euros in its Ingolstadt and Neckarsulm to aid the production of EVs and artificial intelligence initiatives.
Also Read: Renault Car Prices To Increase By Up To 2 Percent From April 2025
The automaker employs approximately 88,000 people globally and has recently shut down a Belgian plant that employed 3,000 workers. This came while the brand faced slow EV sales. In 2024, the brand's electric vehicle sales declined by 8 per cent year-on-year to 164,000 units. Similarly, the sales of the brand in its largest market, China declined by 11 per cent.
The job cuts highlight the wider challenges faced by Germany's automotive industry, which is struggling with a gradual shift to electric vehicles, heightened regulatory demands, and growing global competition.
In December 2024, Volkswagen, the parent company of Audi, announced its plan to reduce 35,000 jobs in Germany by 2030. As car manufacturers adapt to evolving market trends, restructuring the workforce is becoming a key strategy for balancing cost efficiency with future innovation.
Meanwhile, Audi also plans on launching 10 new models in the US by the end of the year. In China, the brand has initiated the production of a Q6L e-tron electric SUV. This plant will also become the site of manufacturing for multiple other models of the brand by mid-2025. All of this is expected to contribute in gaining back the lost market share.
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