Title: Audi Slashes 7.5K Jobs by 2029: Here's the Scoop, Mate!
A Germany-based automaker, Audi, plans to lay off 7500 employees.
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News Summary:In a significant move, Audi is axing 7,500 jobs in Germany by 2029 to become more agile, efficient, and future-proof. CEO Gernot Döllner has assured no operational dismissals will happen before 2033. The first 6,000 job cuts will be achieved by 2027, with another 1,500 to follow by 2029. Audi will invest €8 billion into its German sites and exercise focus and alignment in its team setup.
Details and Insights:
Audi's Job Cuts:The German auto giant plans to cut a total of 7,500 jobs by 2029. Audi and the works council have agreed on a concept to save more than €1 billion per year in the long term. Initially, the company demanded 12,000 job cuts.
Job Security and Investments:The extended job security, which bars dismissals due to operational reasons, will remain in place until 2033. Audi intends to invest €8 billion in its German sites, focusing on the transition to electric mobility.
Job Cuts Distribution:The distribution of job cuts between Audi's sites in Ingolstadt and Neckarsulm is yet to be decided. The job cuts will primarily affect the "indirect area," not production, and aim to reduce bureaucracy.
Employee Compensation:Audi's workforce will face salary cuts, with Structural reform, and temporary reduction of the profit-sharing scheme being part of the cost-cutting measures.
Audi's Financial Performance:Audi is expected to release its full 2024 business figures on Tuesday. The company suffered a substantial decline in profits in the first nine months due to a lack of parts for important engines, weak demand in China, and provisions for the closure of its Brussels plant.
Q3 Production at Ingolstadt:Audi plans to insource the production of the Q3 in Ingolstadt, which will create 1,000 jobs.
Additional Employee Bonus:IG Metall members at Audi in Ingolstadt can look forward to an additional bonus, effective from 2026. This move rewards the solidarity of employees and strengthens the IG Metall's negotiating power.
Responsibility and Agreement:All parties involved in the negotiations for the future agreement have taken responsibility, ensuring the collective agreement's continuity and Audi's future in Germany.
Sources:* ntv.de* lme/dpa
- The community policy signed between Audi and the works council includes measures to save over €1 billion annually, with 7,500 jobs set to be cut by 2029 as part of the employment policy.
- Despite plans for job cuts, Audi has committed to investing €8 billion into its German sites, focusing on the transition to electric mobility, as stated in the employment policy.
- In the year 2029, under the employment policy, Schlagbauer, an Audi employee, may be impacted by the 1,500 job cuts, but the extended job security will prevent any operational dismissals until 2033.
