German car maker Audi has said it plans to cut 7,500 jobs by 2029 as it contends with hot competition from China and dampened demand for new vehicles.
Rather than making major cuts now – equivalent to about 8% of the firm’s global workforce – Audi said it would handle the job reductions gradually over the next four years. Audi CEO Gernot Döllner said the move was part of efforts to increase competitiveness and boost profitability at its German sites.
It’s not just Audi facing significant challenges – many car makers across the sector reported lower earnings last year. In November, Nissan said it would cut global production capacity by 20% and reduce its workforce by 9,000 after failing to meet financial targets.
Meanwhile, Audi’s parent company VW narrowly avoided closing three German plants after talks with unions in December.
Analysts have pointed to various factors, including the slower than expected transition to electric vehicles (EVs) and rising competition from relatively new Chinese...