VW’s Audi to cut one in ten jobs to fund electric vehicles | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

VW’s Audi to cut one in ten jobs to fund electric vehicles

Volkswagen’s luxury car unit Audi yesterday said it would cut one in ten jobs, freeing up billions of euros to fund its shift towards 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 9,500 jobs, or 10.6 per cent of its total staff by 2025, saving 6 billion euros ($6.61 billion), but also create up to 2,000 new positions in the areas of electric mobility and digitalisation. “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 programmes and help it reach a profit margin of 9-11pc. Rival Daimler as well as car suppliers Continental and Osram have also recently announced staff and cost cuts.

Audi agreed to extend an employment guarantee which rules out forced layoffs for its workforce until the end of 2029. Audi said a fund would be set up at the Neckarsulm site to fund the shift towards electric vehicles and would be worth 300 million euros by 2025.