The German car manufacturer Audi eliminates thousands of jobs – just like his mother Volkswagen. A total of 7,500 jobs in Germany are being hit by the end of 2029. The company and the board council have concluded an agreement that, among other things, does not provide for the exemption from operational termination, as both parties have announced.
Audi is currently suffering from the weakening question – especially for electric cars – and also had to struggle with missing parts in 2024. The work in Brussels is closed, which is available with even more billions of billions. The sale of the Progressive Brand Group, which also includes Audi Lamborghini, Ducati and Bentley, shrinks by almost eight percent to 64.5 billion euros in 2024, and the profit collapsed with a only third to 3.9 billion euros. Accordingly, the operational return on sale was reduced to six percent.
The indirect area is influenced by the announced job loss, including administration and development. Audi boss Gernot Döllner said that together with the representative of the employee representative, a sustainable agreement for the future of the company had been reached. Audi must become faster, more agile and more efficient. “One thing is clear: this is not possible without adjustments to the staff.”
Hard but solution -Oriented negotiations
In addition, labor costs must be reduced by adapting to -Tariff and variable payments for tariff staff. Management and board have also made an important contribution. In general, more than one billion euros must be saved annually in the medium term. Jörg Schlagbauer, chief of the board council, said that the negotiations were heavy, but were always aimed at solution on both sides. “We were able to defend many demands from the company to employees, but also had to make compromises to make financial scope possible for extra investments.” In production, Audi had already dismantled thousands of positions from 2019 and considerably reduced capacity on the two works.
In exchange, the employment at Audi was extended to the end of 2033. A future fund with a volume of 250 million euros will be set up, with which new technologies and further training in Ingolstadt and Neckarsulm are supported. The two German works must receive extra models. According to the company, the Q3 in Ingolstadt must be manufactured in combination with the work in Györ in Hungarian, and there is also an electrical model in the input segment. Another model will be checked for Neckarsulm. A location fund with a volume of 250 million euros will be formed for protection. Audi also does it without outsourcing business areas. In Media reports it was sometimes talked about that the canteen or maintenance should be outlined.
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.
