Online Reporter
Volkswagen AG’s Audi plans to cut as many as 7 500 positions in Germany by 2029 as the automaker tries to shore up its flagging profitability.
The reductions, which correspond to roughly 14 percent of the brand’s German workforce, won’t affect factory workers, Audi said Monday.
The carmaker plans to invest around €8 billion (US$8,7 billion) in its German locations during the period.
“Audi must become faster, more agile and more efficient,” said the brand’s Chief Executive Officer Gernot Döllner.
Volkswagen CEO Oliver Blume is slashing spending across the group to become more competitive.
The latest move brings the total number of potential job reductions at the automaker to more than 40 000. Audi’s deliveries slumped 12 percent last year as it struggled in markets including China.
Late last year, Blume struck a deal with unions to cut capacity and 35 000 staff at the namesake VW brand in Germany, where labor and energy is expensive.
Porsche AG plans to cut 1,900 positions as it contends with muted luxury demand in the key Chinese market.
Audi’s Ingolstadt factory will manufacture another entry-level electric model, the brand said, adding that it’s studying the possibility of making an additional vehicle at the Neckarsulm site.
The staff reductions at Audi will happen without firings, the company said. –Bloomberg
