Audi Plans to Cut 9,500 Jobs by 2025 as Part of New Transformation Plan

German automaker Audi, subsidiary of the VAG Group, announced the removal of 9,500 jobs by 2025, as part of a transformation plan to save about 6 billion euros by 2029.
Audi HQ 1 photo
Photo: Cristian Letskalk Trejo / Pinterest
The job cuts will take place "along the demographic curve", said Wendelin Göbel, member of the Management Board, "in particular through employee turnover and a new attractive early retirement programs" with a surprising twist that will see the same percentage of staff reduction take place in management as well.

For the peace of mind of Audi workers, the departures will not consist in directly dismissing personnel, but rather a policy that will see the retirees not being replaced. This indicates that the financial means will allow "increase productivity and sustainably" as part of the "transformation of the automotive industry towards electric mobility and digitalization”.

CEO Bram Schot also stated that: “With the Audi Transformation Plan, we have already anchored a successful program of measures. And we are now also tackling structural issues in order to prepare Audi for the challenges ahead”.

Audi also promised to create 2,000 "new expert positions" in areas related to electric mobility and digitalization, the majority of which will be recruited internally. The German brand has a workforce of about 90,000 people with about 60,000 living in Germany, of which all have been given an employment guarantee until the end of 2029, if they don’t retire of course.

The German manufacturer launches this restructuring plan a few months before the arrival of new boss Markus Duesmann, a former BMW executive who will take the lead of Audi on April 1, 2020.

Duesmann will replace current CEO Bram Schot, who took over Audi in January, in the wake of Stadler’s departure. The former CEO has to gave justice for the well-known Dieselgate scandal that tainted the VAG group.
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