Audi to Cut 7,500 Jobs as Germany’s Auto Industry Faces Crisis

Volkswagen’s luxury brand Audi has announced plans to cut up to 7,500 jobs at its German sites by 2029, as the country’s auto industry struggles with rising costs, increasing competition, and the transition to electric vehicles (EVs).

The job cuts, which represent 8.6% of Audi’s global workforce, are part of a cost-cutting plan aimed at saving €1 billion ($1.1 billion) while allowing the company to invest €8 billion ($8.8 billion) in its German plants over the next five years to support EV production.

Audi cited tough economic conditions, political uncertainty, and growing competitive pressure as key challenges. The company has also been streamlining operations, reducing bureaucracy, and digitising processes to lessen employee workloads.

These layoffs add to the 35,000 job cuts already planned by Volkswagen in Germany by the end of the decade.

Challenges Facing German Automakers

• Delayed EV Transition: German automakers have been slow to adopt EV technology, falling behind Chinese rivals such as BYD and Xpeng.
• US Tariffs on German Cars: President Donald Trump’s planned 25% tariff on imported cars from April 2 could further hurt German automakers by making their vehicles more expensive in the US market.
• Rising Costs & Market Pressures: The industry faces high manufacturing costs and increasing competition, requiring radical overhauls to remain competitive.

As Germany’s automotive sector fights to regain its global edge, these job cuts highlight the economic challenges ahead for Audi and Volkswagen in the EV era.
Source: CNN