Audi's Job Cuts: Adapting to Electric Mobility and Digitalization

Audi, the premium car manufacturer owned by Volkswagen, has announced significant job cuts outside of production, aiming to adapt to the electric vehicle era and digitalization. The company plans to reduce around 9,500 jobs by 2025, primarily through employee turnover and early retirement programs. This strategic move is expected to secure a strategic operating profit margin corridor of 9 to 11% and achieve cost savings of $6.6 billion (6 billion euros) by 2029.

The job cuts will primarily affect non-production areas, with around 2,000 new positions focused on electric mobility and digitalization. This net reduction of 7,500 workers is part of Audi's effort to regain ground lost to competitors like Mercedes-Benz and BMW, while countering pressure from Tesla. The automaker plans to maintain annual production capacities of 450,000 vehicles at its Ingolstadt plant and 225,000 at its Neckarsulm plant, ensuring sufficient output for its product launch plans.

Audi's restructuring efforts are designed to optimize production processes and reduce costs, with a focus on investing in future projects such as electrification and digitalization. The company aims to create a leaner and more efficient structure, driving change within the organization and positioning Audi to achieve extraordinary results in the competitive luxury car market.

The job cuts outside production will impact around 9,500 employees by 2025, with the majority of these cuts achieved through employee turnover and early retirement programs. The net loss of 7,500 workers suggests a strategic shift towards electric mobility and digitalization, as Audi creates around 2,000 new positions in these areas. This restructuring effort is expected to help Audi adapt to the electric vehicle era and achieve its cost savings target of $6.6 billion (6 billion euros) by 2029.

As Audi focuses on electric mobility and digitalization, the company aims to secure its strategic operating profit margin corridor of 9 to 11% by 2029. By investing in future projects and optimizing production processes, Audi seeks to strengthen its competitiveness in the luxury car market and adapt to the changing automotive landscape.

In conclusion, Audi's job cuts outside production are a strategic move to adapt to the electric vehicle era and digitalization. By reducing around 9,500 jobs and creating 2,000 new positions in these areas, Audi is positioning itself to regain ground lost to competitors and achieve its cost savings target. As the company invests in future projects and optimizes production processes, it aims to secure its strategic operating profit margin and strengthen its competitiveness in the luxury car market.