The announcement was made during a works meeting on March 17, 2025, where CEO Gernot Döllner addressed employees about the company’s strategy for maintaining efficiency and competitiveness in an increasingly challenging market.

Luxury automaker Audi has announced a major restructuring plan, confirming that it will cut 7,500 jobs by 2029. The move, aimed at cost savings and reinvestment, comes in response to declining vehicle sales and increased competition, particularly from Chinese manufacturers. The announcement was made during a works meeting on March 17, 2025, where CEO Gernot Döllner addressed employees about the company’s strategy for maintaining efficiency and competitiveness in an increasingly challenging market.

The job cuts will primarily target non-production roles, with employees in administration and technical development bearing the brunt of the reductions. Audi’s key German sites in Ingolstadt and Neckarsulm will see the most significant impact, as the company streamlines its operations to focus on long-term sustainability and growth.

While these cuts raise concerns about job security, Audi has assured employees that it will handle the reductions through voluntary measures. Early retirement packages and other socially responsible transition programs will be prioritized to minimize hardship. Döllner stressed the importance of these adjustments, stating, “Without staff adjustments, we cannot make progress,” reinforcing that these measures are necessary for Audi’s future stability.

Despite the impending layoffs, Audi has extended its employment guarantee until December 31, 2033. This move provides a layer of job security for remaining employees and suggests that the company is taking a measured approach to workforce reductions rather than implementing sudden mass layoffs.

Audi’s management and its works council have worked together to negotiate terms that soften the blow of these cuts. Jörg Schlagbauer, head of the works council, expressed cautious optimism, stating, “We managed to secure important conditions for our future and worked constructively with management.”

The decision to reduce jobs comes amid a steep decline in Audi’s vehicle sales. In 2024, the company experienced a 12% drop, selling approximately 1.67 million units. This downturn reflects broader challenges in the automotive industry, where manufacturers are struggling to keep up with shifting consumer demands and an evolving competitive landscape.

One of Audi’s biggest hurdles has been the rise of Chinese automakers, which have aggressively expanded into the electric vehicle market with competitive pricing and innovative technology. In response, Audi is repositioning itself to ensure long-term growth and profitability.

While the job cuts signal belt-tightening, Audi is simultaneously planning significant investments to revamp its operations. The company has committed eight billion euros to upgrading its German plants by 2029, reinforcing its commitment to innovation and sustainability. Part of this investment will go toward preparing the Ingolstadt facility for the production of the next-generation Q3 model, aimed at enhancing efficiency and maximizing plant capacity.

Audi’s restructuring efforts reflect a delicate balancing act between cost-cutting and reinvestment. While the layoffs represent a challenging period for affected employees, the company’s long-term vision suggests an emphasis on agility, technological advancements, and staying competitive in a rapidly changing industry.

As the automotive sector continues to evolve, Audi’s ability to adapt will determine whether these strategic cuts pave the way for a stronger future or signal deeper turbulence ahead.