Volkswagen Group premium brand Audi aims to cut 7,500 jobs by 2029 in areas such as administration and development to ensure the future competitiveness of its German facilities.
Audi management and the works council have signed an agreement as part of a broader strategy to bolster the brand’s resilience, technological advancement, and secure employment at its German sites.
Effective immediately, the agreement also extends job protection for existing employees until the end of 2033.
In the face of intensifying economic challenges and competitive pressures, Audi has taken decisive steps to future-proof and enhance the competitiveness of its German locations, the company said.
Audi member of the board of management for human resources Xavier Ros said: “We are focusing our team setup and consistently orienting it to the requirements of the future. We are doing this in a socially responsible targeted, step-by-step manner. To this end, we are now entering into a dialog with our employees. The employee representatives are our close partners every step of the way. Our shared Audi path makes us strong and stable.”
The agreement between Audi’s board of management and the works council focuses on increasing productivity, speed, and flexibility in Ingolstadt and Neckarsulm facilities.
Audi CEO Gernot Döllner said: “In times of profound change, company management and the works council are pulling in the same direction.
“With this clear agreement, we are strengthening Audi’s competitiveness and future readiness in equal measure. Together, we are sending a clear signal for more focus, efficiency, and profitability at our German sites.
“We have already achieved a lot with the Audi Agenda – our transformation and strategy program – such as the realignment of our product portfolio The agreement for the future is the basis for the systematic implementation of the personnel transformation.”
This aligns with Audi’s objective to streamline its portfolio and reduce bureaucracy, having already made significant cuts to guidelines and committees.
Audi is also flattening its management structure and accelerating decision-making processes to foster innovation.
General Works Council chairman Jörg Schlagbauer said: “Through a temporary reduction and a new structure of the profit share programme, the Audi workforce is giving a major contribution to making the four rings weatherproof and future-proof again.
“Overall, the Audi workforce is investing many, many millions of euros in its own future over coming years.”
Audi is set to adjust personnel costs by revising payments above the collective wage agreement and variable payments for pay-scale employees.
The company said it also remains committed to training young talent, adjusting the number of apprenticeships and dual study places to meet company requirements.
The company is planning to invest around €8bn in the Ingolstadt and Neckarsulm sites through 2029, with a focus on electric mobility and digitalisation.
A “future fund” of €250m is also being established to potentially add another model to the Neckarsulm production line.
The agreement is expected to result in savings of more than €1bn annually in the medium term.
General Works Council vice-chairman Rainer Schirmer said: “We were able to future-proof both sites. For Neckarsulm, this means, among other things, that we were able to secure a “future fund” for plant development, which we can use to set up new production platforms – for future electric models.
“To this end, Neckarsulm is to be expanded as an AI and digitalisation centre for the entire Audi Group. The focus here will be specifically on the area of production.”
Lats month, Audi launched a new organisational unit, “Transformation, Consulting, and Organization,” to enhance efficiency and competitiveness.
The firm is undertaking organisational changes to enhance efficiency, streamline operations, and strengthen its competitive position in the global market.
