Audi, a luxury car maker owned by Volkswagen Group, will lay off 7,500 jobs in Germany by the end of 2029.
The move, along with financial cuts from other employees, aims to save more than 1 billion euros ($1.09 billion) per year in the medium term.
The company and engineering committees argued on savings plans, but now agreed to a concept. Engineering Committee Chairman Jörg Schlagbauer said the company had originally planned to cancel 12,000 jobs.
“Audi needs to be faster, more agile, more efficient. One thing is obvious: without labor adjustments, it would be impossible.”
But Döllner stressed: “It will not be until the end of 2033 for operational reasons, and there will be no layoffs. In a tough economic period, this is good news for all employees.”
The current job safety plan that does not include mandatory layoffs will be extended until the end of 2033. It was previously applied at the end of 2029.
Audi also said it plans to invest 8 billion euros in its German ruins.
“We positioned Ingolstadt and Neckasulm as powerful and flexible to challenge electric mobility,” Döllner said. Ingolstadt is near Munich and Neckasulm is near Stuttgart.
