According to media reports, German car manufacturer Audi plans to cut around 4,500 jobs. There are more than 2,000 jobs in development alone.
The Volkswagen subsidiary confirmed that the board of directors and the works council were currently negotiating. No comment was made on the number of positions affected. The employment guarantee applies at least until 2029, according to CFO Jürgen Rittersberger.
At the same time, this agreement stipulates that negotiations will be initiated if general conditions deteriorate. That is now the case, says a spokeswoman for the car manufacturer. Profit fell sharply last quarter, partly due to high costs for the suspected closure of the factory in Brussels (see video above).
Restructuring planned
Audi now wants to reorganize technical development. From January 1, various domains will work together more closely and enable faster decisions. Recently, the company has been experiencing huge delays in importing new vehicles, mainly because the necessary software was not yet ready. The electronic Q6 e-tron came onto the market about two years too late.
The company itself has not confirmed any job cuts; reports put the figure at 15 percent. That would be around 4,500 jobs in Germany alone. Audi parent Volkswagen could close three factories and cut tens of thousands of jobs. In the current collective bargaining round, management is demanding a ten percent reduction in salaries and the waiver of special benefits. Job security at Volkswagen has already ended.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
