March 18, 2025 – German luxury automaker Audi has announced today that it will cut up to 7,500 jobs in Germany by 2029, affecting areas such as administration and development.
The planned measures were agreed upon on Monday by management and labor representatives, local time. It is claimed that these measures will save Audi one billion euros annually in the medium to long term. The company added that it will invest a total of eight billion euros in its German factories over the next four years.
The layoffs at Audi bring the total number of planned job cuts within the Volkswagen Group to nearly 48,000. Volkswagen has introduced a cost-cutting plan involving 35,000 job reductions, Porsche plans to cut 3,900 jobs, and the software division Cariad intends to reduce its workforce by around 1,600 positions.
According to Reuters, Audi has already cut about 9,500 production jobs since 2019. The company stated at the time that these actions should release billions of euros in funds to support its transition to electric vehicles and increase its profit margin to between 9% and 11%.
However, the brand has struggled in recent years, with its operating profit margin plunging from 7% in the same period last year to 4.5% in the first nine months of 2024. This decline is primarily attributed to weak sales in its key markets and the costs associated with the shutdown of its troubled factory in Brussels.
