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VW's Audi to cut jobs as it shifts to electric vehicles

Audi, the luxury division of automotive giant Volkswagen, is set to cut one in ten jobs, in a move intended to free up billions of euros to fund the company's shift towards electric vehicle production.

The news comes as carmakers are not only struggling with an industry downturn, particularly in key markets like China, but are also having to increase investment in electric vehicles as several countries move to eventually ban conventional combustion engines.

Audi said it would look to cut up to 9,500 jobs, or 10.6% of its total staff by 2025, saving 6 billion euros (£5 billion), but also create up to 2,000 new positions in the areas of electric mobility and digitalisation.

“The company must become lean and fit for the future, which means that some job profiles will no longer be needed and new ones will be created,” Audi said in a statement.

Audi has agreed to extend an employment guarantee which rules out forced layoffs for its workforce until the end of 2029, so most of the layoffs will come through employee turnover and/or early retirement.

Daimler, as well as car suppliers Continental and Osram have recently announced staff and cost cuts

Author
Neil Tyler

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