Audi to layoff 7,500 employees as Chinese EVs pose competition
What's the story
Premium car maker Audi has announced plans to cut 7,500 jobs in Germany by 2029.
The company cited "immense challenges" like a drop in electric vehicle (EV) demand and rising competition from China as the reason behind this decision.
The move, which accounts for about 8% of Audi's global workforce, is aimed at boosting "productivity, speed and flexibility" at its German factories.
Corporate challenges
Audi's statement on economic conditions and job cuts
Audi, a Volkswagen subsidiary, admitted in a statement that "the economic conditions are becoming increasingly tougher."
The company emphasized that "competitive pressure and political uncertainties are presenting immense challenges."
The announcement comes amid wider challenges for the German automotive industry, which is struggling to transition to electric cars, facing stiff competition from Chinese manufacturers, and weak consumer demand.
Job reduction strategy
Audi's approach to job cuts and cost-saving measures
The job cuts at Audi will mostly impact administrative and development positions, however, the company has promised to carry out these changes in a "socially responsible" way.
No forced redundancies will be made, as per the carmaker.
Along with job cuts, Audi is also planning other measures such as cutting down on bureaucratic processes with a target to save €1 billion each year.
Future investment
Audi's investment plans amid job cuts
Despite the job cuts, Audi has announced plans to invest around €8 billion into its two biggest sites in Germany, Ingolstadt and Neckarsulm.
The investment, which is part of a strategy to shift to electric vehicles (EVs), will include the production of a new entry-level electric model as well as advancements in artificial intelligence.
Market challenges
Audi's recent struggles with EV demand and production
Audi has been hit hard by the declining demand for EVs. In February, the company shuttered a plant in Belgium, which employed some 3,000 people and manufactured high-end EVs.
Additionally, deliveries of fully-electric vehicles fell 8% year-on-year in 2024 to some 164,000 units.
Deliveries in China, which makes up nearly 40% of Audi's global total, declined by some 11%.