Audi will cut 7500 jobs in Germany by the end of 2029 as part of a major cost-reduction initiative aimed at saving more than €1 billion (£860 million) annually.
The Ingolstadt-based company reached the decision after extensive negotiations with employee representatives. Audi said that the new agreement with the works council will ensure it is “robust and flexible for the transition to electric mobility”.
Initially, discussions considered a larger reduction of up to 12,000 positions. However, the final plan focuses on eliminating jobs primarily in administrative and non-production areas.
The first 6000 positions are slated for phase-out by 2027, with an additional 1500 reductions by 2029. Audi says that there will be no compulsory redundancies, extending employment guarantees until the end of 2033.
The job reductions come as Audi faces declining global sales. In 2024, the company delivered approximately 1.7 million vehicles worldwide, marking an almost 12 per cent decrease compared to the previous year.
In response, Audi is not only cutting jobs but also reducing employee bonuses. The profit-sharing bonus for workers in 2024 was €8840 (£7600) per employee, but future payouts are expected to be lower.
"Audi must become faster, more agile, and more efficient," said Audi boss Gernot Döllner. "It is clear that personnel adjustments are necessary."
Investment in electrification, but internal combustion engines to continue
As part of its restructuring, Audi has committed to investing €8 billion (£6.9 billion) in its German operations to strengthen its transition to electrification. The company plans to expand electric vehicle production at its Neckarsulm plant, including an electric variant of its flagship A8. Meanwhile, the upcoming Audi Q3 will be built in Hungary.
The firm has also confirmed that it will build a new entry-level electric model at its Ingolstadt site. However, Audi has also said it will continue investing in internal combustion engine production at the plant beyond 2030.
Originally, Audi had planned to stop developing new petrol and diesel models by 2026 and to cease selling internal combustion engine vehicles in Europe by 2033. With electric vehicle adoption progressing more slowly than anticipated, the company is now reconsidering these timelines.
Audi achieves record UK sales share in 2024
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