Audi to Cut 7,500 Jobs Amid Challenges in Germany’s Auto Industry
Audi has announced plans to cut up to 7,500 jobs at its German facilities by 2029, citing increasing economic pressure and the need to transition to electric vehicle (EV) production. The move is part of a cost-cutting strategy agreed upon with employee representatives, aimed at ensuring the company remains competitive in the evolving automotive market.
In a statement on Monday, the luxury carmaker, owned by Volkswagen, said the restructuring plan is expected to save €1 billion ($1.1 billion) in the medium term. At the same time, Audi intends to invest €8 billion ($8.8 billion) over the next five years to upgrade its German plants for EV manufacturing.
“The economic conditions are becoming increasingly tougher,” the company noted, adding that rising competitive pressure and political uncertainties present “immense challenges.”
The planned layoffs represent approximately 8.6% of Audi’s global workforce. The company also emphasized that the cuts are aimed at streamlining operations, reducing bureaucracy, and improving efficiency through digitization.
Germany’s Auto Sector Under Pressure
Audi’s workforce reduction follows a broader trend in Germany’s auto industry, where its parent company, Volkswagen, has already outlined plans to cut over 35,000 jobs in Germany by the end of the decade.
The German auto sector has struggled to keep pace with growing competition from Chinese EV manufacturers such as BYD and Xpeng, which have been quicker to embrace electric vehicle technology. As a result, German carmakers find themselves working to catch up in a rapidly shifting global market.
Adding to the uncertainty, former U.S. President Donald Trump has threatened to impose a 25% tariff on imported cars starting April 2. If enacted, the tariffs could make German-made vehicles significantly more expensive in the U.S., potentially reducing their appeal to American consumers and further straining Germany’s automotive industry.
