German automaker Audi decided to reduce its workforce by 7,500 jobs in Germany by the end of 2029. The move, amounting to 8% of Audi’s global workforce, comes as the company faces mounting challenges, including slowing demand for electric vehicles, rising competition from China, and economic uncertainty.
The job cuts are part of a strategy to enhance ‘productivity, speed, and flexibility,’ Audi said in a statement. The company, a subsidiary of Volkswagen, emphasized that economic pressures, competitive market conditions, and political uncertainties are creating significant challenges for the business.
Audi’s Management Board Chairman Gernot Döllner reassured employees that there will be no compulsory redundancies before the end of 2033, extending the current job security program by four years beyond its initial 2029 deadline. Instead, the job reductions will be implemented through voluntary redundancies and contract expirations.
Germany’s automobile sector, long regarded as a pillar of the country’s industrial strength, is facing increasing difficulties. The shift to electric vehicles has been sluggish, while competition from Chinese manufacturers and weak global demand have further strained the industry. Additionally, the looming possibility of U.S. tariffs on European car imports adds to the sector’s challenges.
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