Audi in crisis: 7,500 job cuts and uncertainty among employees!

Audi in crisis: 7,500 job cuts and uncertainty among employees!

The tension is rising at Audi in Neckarsulm, where an important company meeting took place on Thursday. The latest austerity measures are causing unrest among the approximately 7,500 employees in Germany. In order to save around 1 billion euros annually, a workforce reduction has been announced, which is expected to come into force by 2029. SWR reports that a majority of 90% of the reductions should be carried out in a socially acceptable manner through partial retirement and early retirement. However, specific details about the affected areas remained unclear.

Audi boss Gernot Döllner will answer questions from the workforce in the next few days and has emphasized that no cuts in production are planned. This information could provide some reassurance to employees considering their future. Nevertheless, uncertainty remains high, as a quick survey shows. Logistics employee Samira Mack and temporary worker Manuel Gauch are among those who are worried about their employment.

The pressure is growing

Employees are in a tense situation due to a 38% decline in operating profits to 3.9 billion euros and declining sales figures. In 2024, Audi only sold 1.67 million vehicles, which means significant losses compared to BMW and Mercedes-Benz. Augsburger Allgemeine reports that this development is accompanied by internal conflicts within the company management, which exacerbates the already numerous challenges for the workforce.

The head of the works council, Jörg Schlagbauer, emphasized that 90% of the reductions will take place through partial retirement and early retirement regulations. These regulations are specifically intended for those born between 1964 and 1968 as well as for employees between 1967 and 1970, who can then take early retirement.

Audi in transition

The employees agree that Audi needs to sell more vehicles in order to secure the Neckarsulm location in the future. Production group leader Eberhard Zawal also sees the changes as logical, as the production of electric cars is becoming more important. Series supervisor Jenny Berkefeld shows confidence in the company's ability to adapt. South Germans makes it clear that there has so far been a comparatively calm atmosphere at Audi, in contrast to like-minded companies such as Volkswagen, where working relationships are more difficult.

The works council chairman downplays the need for a new Audi plant in the USA, as the existing German locations would be well positioned, but not at full capacity. In addition, safety guarantees and product commitments are required for the German locations before agreeing to a new factory abroad.

In view of these events, Audi management and the works council have agreed on a future agreement that primarily focuses on the competitiveness of the German locations. Investments in new technologies and improving educational offerings are intended to increase efficiency and secure the basis for the future.