Car industry Audi cuts 7500 jobs
Audi has been struggling with cost-cutting plans for months. An agreement has now been reached between the Group and the employees. Audi aims to save more than one billion euros per year in the medium term.
17.03.2025, 18:09
SDA
The car manufacturer Audi is cutting a total of 7500 jobs in Germany by the end of 2029. Together with other financial cuts for employees, the company intends to save more than one billion euros per year in the medium term, as it announced.
Protracted negotiations
The Group and the works council had long and intensively negotiated the savings plans, but have now agreed on a concept. In the meantime, there were also significantly higher figures for the job cuts: the Chairman of the General Works Council, Jörg Schlagbauer, cited the company's original demand of 12,000 jobs.
"Audi must become faster, more agile and more efficient. One thing is clear: this is not possible without personnel adjustments," said Chairman of the Board of Management Gernot Döllner. At the same time, he emphasized: "There will be no compulsory redundancies until the end of 2033. This is good news for all employees in these difficult economic times."
Specifically, the current job security, which excludes redundancies for operational reasons, will be extended until the end of 2033. Previously, it had applied until the end of 2029.
At the same time, Audi plans to invest eight billion euros in its German sites. For the challenging transition to electric mobility, "we are making Ingolstadt and Neckarsulm as robust and flexible as possible", as Döllner emphasizes.
Exact distribution still unclear
According to Audi, the job cuts will take place in the "indirect area" - in other words, they will not affect production and will reduce bureaucracy. In addition, cuts are not to be made with a lawnmower. Rather, the "team structure will be focused and consistently aligned with the requirements of the future", says HR Director Xavier Ros.
The first 6,000 jobs are to be cut by 2027 and a further 1,500 by the end of 2029. How the cuts will be distributed between the Ingolstadt and Neckarsulm sites is still open.
Further cuts will affect Audi employees in terms of pay. Among other things, the profit-sharing scheme will be structurally restructured and additionally reduced for several years. This involves significant sums of money.
In 2024, the employee profit-sharing scheme paid out for 2023 amounted to EUR 8840 per employee. The participation for 2024, which will be paid out in the current year, will not yet be affected by the reduction that has now been agreed. However, it is likely to be weaker due to the recent downturn in business.
Audi will present full figures for the 2024 financial year on Tuesday. Profit almost halved in the first nine months. Among other things, Audi suffered from a lack of parts for important engines, weak demand in China and provisions for the closure of its plant in Brussels.
Works Council: Much averted
According to Schlagbauer, the workforce is making a major contribution to making the four rings weatherproof and future-proof again and is investing many millions of euros in its own future.
In return, it had been possible to avert a great deal in the "tough, but always factual and solution-oriented negotiations" on both sides. For example, neither the collectively agreed monthly pay nor bonuses and supplements would be affected and the outstanding pay increases would not be postponed.
Schlagbauer also attaches great importance to the Group's promise to also build the Q3 in Ingolstadt in future. Furthermore, a total of 1,000 jobs will be brought back through so-called insourcing. This refers to the reintegration of previously outsourced processes or functions.
"Some of the key points of the future agreement mean cuts for employees," says HR Director Ros. "We are aware of that. At the same time, they are absolutely necessary to prevent redundancies. That was and is my goal."
IG Metall member bonus
Members of IG Metall can also look forward to an additional bonus in future. This will apply from 2026, according to Karola Frank, Chairwoman of IG Metall at Audi in Ingolstadt.
Horst Ott, Regional Director of IG Metall in Bavaria, praised the measure: "This rewards the solidarity of employees who stand up for each other, ensure a strong IG Metall and thus make collective agreements and good negotiation results possible in the first place."
In the negotiations on the future agreement, all negotiating parties had taken responsibility, secured the collective agreement and strengthened the future of Audi in Germany.
