Audi cuts 9500 jobs in Germany to fund EV investment

Audi has confirmed that it will cut up to 9500 jobs at its German production facilities in the next five years.

The decision, officially announced today, is claimed to free up €6 billion (£5.14bn) for investment in the company’s burgeoning electric vehicle (EV) product offensive and digital technologies.

Audi employs around 62,000 workers in its home country, meaning around 15% of its workforce will be gone by 2025. However, it will extend its employment guarantee for its “core workforce” until 2029 and claims profit-sharing between workers will continue. It will also still recruit for new jobs.

Audi stated: “The company must become lean and fit for the future, which means that some job profiles will no longer be needed and new ones will be created. That is why Audi is investing systematically in future-oriented qualification measures for the employees and thus in the future of the two sites in Germany”.

Profits have taken a hit in recent months as Audi readies huge factories in Ingolstadt and Neckarsulm, with a combined annual capacity of 675,000 units, for EVs to be built. Higher-than-average personnel costs and substantial research and development investment are cited as reasons for the cutbacks.

Earlier this month, Audi rival Daimler confirmed it would cut 10% of managerial roles in order to save €1.3bn (£1.11bn) in personnel costs. At the time, the parenty company of Mercedes-Benz warned that the rollout of electrification would significantly harm its profits until at least 2021.


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