INGOLSTADT, GERMANY - Audi is planning to cut a total of 7500 jobs in Germany as part of a plan to make it “lean and sustainable”, the company announced on Tuesday.
The VW-owned German carmaker said that it will cut up to 9500 jobs by 2025, but will also create up to 2000 new positions in areas such as electric mobility and digitalisation, under an agreement reached by the company's management and the works council.
The job cuts will not entail forced redundancies, but rather "take place along the demographic curve - in particular through employee turnover and a new, attractive early-retirement programme," Audi said in a statement.
The company has an employment guarantee for its workforce that it said will be extended from 2025 to 2029.
Audi and its works council had long been negotiating a "future pact" for the company, which has been in a slump ever since the 2015 diesel emissions scandal and has fallen behind its competitors Mercedes and BMW.