Audi to Cut 7,500 Jobs by 2029 Amid EV Transition

In a significant restructuring effort, Audi has announced plans to cut up to 7,500 jobs by 2029 as the company navigates the shifting landscape of the automotive industry toward electric vehicles (EVs).

Facing intense competition from emerging brands, particularly from China, Audi’s decision reflects the broader challenges facing luxury automakers in the current market climate.

Last year, Audi’s deliveries fell nearly 12%, amounting to approximately 1.7 million vehicles. The company attributed this decline to “challenging economic conditions, an intensely competitive market, and limited availability of parts”.

Luxury car manufacturers are feeling the heat

This trend is echoed by other luxury manufacturers, such as Aston Martin, which recently revealed plans to reduce its workforce by 5% following a staggering 400% surge in fourth-quarter losses.

In response to these mounting pressures, Audi aims to save around €1 billion ($1.1 billion) through workforce reductions in indirect areas. These funds will be reinvested to bolster growth, with the company pledging approximately €8 billion ($8.7 billion) for its plants in Germany.

New EV models are slated for production in Ingolstadt, alongside plans to evaluate the introduction of a potential additional model in Neckarsulm.

As the competition intensifies, particularly from Chinese brands like BYD, XPeng, and NIO, luxury car manufacturers are feeling the heat. The rapid advancements and lower price points of these competitors are pushing traditional automakers to adapt or risk obsolescence.

Moreover, Audi has entered a partnership with Chinese automotive giant SAIC to jointly develop EVs, aimed at regaining lost ground and ensuring that the brand remains relevant in an ever-evolving market. With these strategic shifts, the question remains: Can legacy automakers like Audi successfully keep pace with the EV revolution? Only time will tell.