Audi will cut 9,500 jobs by 2025 to save 6 billion euros on the company’s electric transformation. On November 26th Audi, the luxury car brand owned by Volkswagen Group, announced in a statement that it plans to cut 9,500 jobs, or 10.6 percent of its workforce, by 2025. This will save Audi 6 billion euros over the next decade to support the company’s accelerated transition to electrification and digitalization.
The job cuts come as Audi says it will create as many as 2,000 new jobs in the electric car and digital sectors, so net job losses will be 7,500.
Recently, the major car companies have accelerated the pace of electric transformation, Audi is no exception. In March, Audi announced plans to invest 14 billion euros ($15.9 billion) in electric, digital and autonomous driving by 2023. In October of the same year, Audi announced its electric planning blueprint, said it will fully enter the era of electric travel, a full transformation into an electric travel service provider, by 2025 plans to launch more than 30 electric models, electric model sales will account for 40% of the total sales.
Audi said in a statement that the company must streamline and adapt to the future, meaning that some jobs will no longer be needed and new jobs will be added.
Bram Schot, Audi’s chief executive, said: “In turbulent times, we are making Audi more agile and efficient, which will increase productivity and enhance the sustainable competitiveness of German factories. “
Audi also said the job cuts would include management positions and that they would be carried out along the demographic curve through staff turnover and early retirement plans to ensure the company maintained a profit margin of 9.0 to 11.0 percent.
Audi said executives had been in discussions with the labour committee to agree to extend job security until the end of 2029, which excludes forced redundancies.
It’s worth noting that Audi’s rival Mercedes-Benz also recently announced job cuts to cut costs. On November 14th Daimler Ag- Daimler, The parent company of Mercedes-Benz, announced that it would cut the number of employees in its Mercedes-Benz automotive division in order to save costs and transform itself into automation and electro-electric. Daimler said the job cuts were aimed at saving 1 billion euros by the end of 2022. Mercedes-Benz will cut 1,100 leadership positions worldwide, or about 10 percent of its management, according to a newsletter published by Daimler’s labour committee, as cited by sueddeutsche Zeitung.