Volkswagen's Audi To Slash Up To 7,500 Jobs By 2029 To Boost Competitiveness

Volkswagen AG VWAGY owned luxury car brand, Audi AG is taking steps to secure its future in the face of mounting economic pressures.On Monday, the German car manufacturer said it reached an agreement with the works council aimed at strengthening the competitiveness and sustainability of its operations, particularly in Ingolstadt and Neckarsulm.The deal focuses on job protection, improved productivity, and a clear technological emphasis, with plans for a quick transition to electric mobility. The new agreement will remain in effect immediately and continue until the end of 2033.As part of this, Audi will extend its job protection plan until 2033, focusing on creating a more resilient workforce while also targeting reduced labor costs.The company aims to increase productivity and speed in its production processes through a series of structural changes, which include a reduction of up to 7,500 indirect jobs by 2029.Xavier Ros, Member of the Audi Board of Management for Human Resources, 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.”Also Read: Hyperfine, Nvidia Partner To Make Brain MRIs More AffordableAudi is also overhauling its management structure to streamline decision-making processes, reducing bureaucracy, and relying more on digital solutions.The company is also focusing on cutting down personnel costs by adjusting various forms of compensation, including wage agreements. Key leaders, including Audi’s management and board, are contributing significantly to this cost-saving effort.Jörg Schlagbauer, Chairman of Audi’s General Works Council, said, “Through a temporary reduction and a new structure of the profit share program, 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.”In terms of long-term investment, Audi is committing 8 billion euros ($8.76 billion) to its German plants by 2029, with a focus on the production of electric vehicles.In Ingolstadt, a new electric model will be introduced, while in Neckarsulm, the company will boost its AI and digitalization expertise to improve vehicle production.Additionally, Audi is creating a “future fund” of €250 million to help develop new production platforms for future electric models.The new agreement for the future aims to save Audi over €1 billion annually in the medium term by optimizing its workforce and production strategies.Price Action: VWAGY shares closed higher by 1.26% at $12.07 on Monday.Read Next:PepsiCo Bets Big On Prebiotic Sodas With $1.95 Billion Poppi Acquisition: DetailsImage by Valdis Skudre via Shutterstock.This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.