Audi cuts staff to cater for electric carsNovember 26, 2019
It is alleged that the decision, officially announced today, will release 6 billion euros for investing in innovative products and digital technologies of the company.
Audi employs about 62,000 workers in its home country, which means that by 2025, about 15% of its workforce will disappear. However, it will extend the employment guarantee for its “core workforce” until 2029 and states that the distribution of profits among workers will continue. He will also continue to recruit for new jobs.
Audi said: “The company must become well-prepared and prepared for the future, which means that some job profiles will no longer be needed and new ones will be created. That is why Audi is systematically investing in future-oriented qualification measures for employees and, therefore, in the future of two sites in Germany. ”
In recent months, profits have risen sharply as Audi prepares huge factories in Ingolstadt and Neckarsulm with a total annual capacity of 675,000 units for the construction of electric vehicles. Higher than average staff costs and significant investments in research and development are cited as the reasons for the reduction.
Earlier this month, Audi Daimler rival confirmed that it would cut 10% of management roles in order to save 1.3 billion euros (1.11 billion pounds) in staff costs. At that time, the parent company of Mercedes-Benz warned that the deployment of electrification would cause significant damage to its profits until at least 2021.
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