Audi has announced plans to cut up to 7,500 jobs by 2029 as part of a broader restructuring effort to improve efficiency, reduce costs, and adapt to changing market conditions. The decision follows discussions with the company’s works council and includes an extension of job protections in Germany until 2033.
The luxury automaker, a subsidiary of the Volkswagen Group, announced that it will reduce its workforce to increase flexibility, streamline operations, and refocus its product portfolio. These measures are expected to generate over €1 billion ($1.08 billion) in annual savings.
The automaker noted how economic conditions are becoming “increasingly tougher,” competitive pressure is rising, and political uncertainties are adding to the challenges.
Cost-cutting and workforce adjustments
In addition, Audi is planning to carry out the reductions in what they describe as a “socially responsible” manner. The company intends to reduce personnel costs by adjusting management salaries, modifying profit-sharing programs, and limiting payments above collective wage agreements.
However, despite the cuts, the German automaker will invest €8 billion ($8.7 billion) in its German operations through 2029. This includes plans to produce a new entry-level EV and a redesigned Q3 in Ingolstadt, Germany, while Neckarsulm will continue developing combustion-engine technologies and may add an additional production model.
As Audi reassesses its commitment to an all-electric future, the company has confirmed the continued development of combustion-engine vehicles, indicating a departure from its 2026 goal of exclusively launching electric models.
Further, the automaker is restructuring its management hierarchy, flattening leadership to three levels, and increasing digitalization efforts to reduce workloads.
With more than 87,000 employees worldwide—including 54,000 in Germany—Audi is implementing these changes to navigate slowing EV adoption, economic pressures, and geopolitical uncertainties.
