Audi is reportedly set to lay off 15% of its workforce, a move that could see up to 4,500 jobs cut, as part of an aggressive cost-cutting strategy in response to financial pressures.
Targeting Indirect Roles
The German automaker is targeting “indirect” roles — mainly in development and administrative departments — while largely sparing production line positions.
Audi has confirmed that discussions are ongoing with employee representatives, though it has not released a final number of job cuts, according Boosted.
This restructuring effort mirrors similar strategies at parent company Volkswagen, as both automakers grapple with challenges affecting the entire industry.
The cuts come amid declining sales and profitability, exacerbated by a global slowdown in the auto market and rising production costs.
In the third quarter, Audi’s sales in the United States dropped by 21%, with nearly all models showing reduced deliveries except for the e-tron GT and Q3.
Overall, the brand’s quarterly profits plummeted by 92%, a stark reflection of the financial strain facing legacy automakers as they transition to electric vehicles (EVs).
Plans to Close Factory
Adding to the challenges, Audi plans to close its factory in Brussels, where the Q8 e-tron is produced.
The facility, which employs around 3,000 workers, is set to shut down on February 28, 2025, marking the first time in Volkswagen Group’s 87-year history that a European plant will close.
Audi engaged with 26 potential investors to sell the plant but failed to secure a viable deal.
Audi’s struggles reflect broader industry issues, as automakers face high costs related to EV production, slowing demand in major markets, and supply chain disruptions that have persisted since the COVID-19 pandemic.
Many companies, including Volkswagen, are also navigating increased competition from new EV-focused brands.
In response, Volkswagen has proposed a 10% pay cut and removed anniversary bonuses to mitigate financial strain, emphasizing that it has only two to three years to turn its finances around.
