Audi to slash workforce

Audi has announced plans to cut 7,500 jobs as it seeks ways to save €1 billion (NZ$1.9b) and at the same time fund the “challenging transition to electric mobility”.

The German carmaker, which is owned by Volkswagen, says it will axe about eight per cent of its 88,000-strong global workforce by 2029. 

“The economic conditions are becoming increasingly tougher, competitive pressure and political uncertainties are presenting the company with immense challenges,” it adds.

The cuts will be carried out in a “socially responsible” manner, which means no compulsory redundancies and workers will instead not be replaced when they retire or leave, reports the Telegraph.

Audi is reducing staff numbers as it seeks to free up cash to accelerate its shift to EVs, which includes plans to spend about €8b at factories in Ingolstadt and Neckarsulm in Germany.

Gernot Dollner, pictured, Audi’s chairman, says: “We are setting Ingolstadt and Neckarsulm up to be robust and flexible for the challenging transition to electric mobility.

“Audi must become faster, more agile, and more efficient. One thing is clear: this cannot be done without personnel adjustments.”