Audi to Cut 7,500 Jobs, Extend Job Protection

Audi, a subsidiary of Volkswagen, plans to cut 7,500 jobs in Germany by 2029 as part of a cost-reduction strategy aimed at saving over €1 billion annually and increasing flexibility and efficiency at its Ingolstadt and Neckarsulm facilities. The job cuts, which represent approximately 8% of Audi's global workforce, will primarily affect administrative and non-production roles, with no compulsory redundancies. This move is driven by declining global sales, competitive pressures, and the costly transition to electric vehicles (EVs). Despite the layoffs, Audi will invest €8 billion in its German operations to support the transition to electric mobility, including developing new entry-level electric models and enhancing AI capabilities. Amidst these challenges, Audi has extended a job protection plan until 2033 and will continue to invest in internal combustion engines alongside EVs. The broader Volkswagen Group is also undergoing significant restructuring, with planned layoffs across its brands totaling nearly 48,000 positions.