INTERNATIONAL - Volkswagen’s luxury car unit Audi on Tuesday said it would cut one in ten jobs, freeing up billions of euros to fund its shift toward electric vehicle production.
Carmakers are struggling with an auto industry downturn, particularly in key market China, and the need to increase investment in electric vehicles as several countries move to eventually ban conventional combustion engines.
Audi said it would cut up to 9500 jobs, or 10.6 percent of its total staff by 2025, saving 6 billion euros ($6.61 billion), but also create up to 2000 new positions in the areas of electric mobility and digitalization.
“The company must become lean and fit for the future, which means that some job profiles will no longer be needed and new ones will be created,” Audi said in a statement.
The group said the cuts, which would also include management positions, would take place along the demographic curve through employee turnover and early retirement programs and help it reach a profit margin of 9-11 percent.