The excellent auto maker said on Monday that it will reduce 7500 jobs by 2029 in Germany, noting “tremendous challenges” as the car industry battles in the country slow down the demand for electric vehicles and the high Chinese competition.
The manufacturer said that the cuts – which reach about eight percent of the global workforce of Audi – aims to enhance “productivity, speed and flexibility” in its factories in its local market.
“The economic conditions have become increasingly more stricter, competitive pressure and political doubts, the company provides tremendous challenges,” Audi, a Volkswagen company, said in a statement.
This is the latest news from the sick car sector in the largest economy in Europe, which is severely exposed due to a stumbling turning to electric cars, fierce competition in the main market of China from local competitors and poor demand.
Audi, whose headquarters are in the Bavarian city of Ingolsat, said that the cuts will be in areas such as administration and development and are implemented in a “socially responsible” manner, which means that there will be no mandatory supplies.
The auto industry company employs about 88,000 people all over the world, including 55,000 in Germany.
Functional cuts are part of a series of measures, which also include reducing bureaucracy, which Audi said aimed at providing one billion euros ($ 1.1 billion) annually.
However, the car maker also said that he is planning to plow about eight billion euros in his largest sites, Ingulottat and Nicarmelm in Germany, partly to help move to electric cars (EV).
This will include investments in the production of another electrical model in the beginners sector as well as in artificial intelligence.
Audi was severely subjected to slowing the demand for EV, and in February, it closed a factory in Belgium, which used about 3,000 people and manufacture an upscale electric car.
The delivery of cars in electric cars fully fell by eight percent on an annual basis in 2024, to about 164,000.
Delivery in the Chinese market, which represents approximately 40 percent of the global total, a decrease of about 11 percent.
AUDI – which makes 10 brands – has announced in December that it will reduce 35,000 VW brand jobs in Germany by 2030.
This story was originally shown on Fortune.com
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