As reported by Deutsche Welle Audi announced on Monday that he was going to slow down 7,500 employees in Germany. As a reason for reducing 8 percent The company gave the global workforce “huge challenges” related to a decrease in demand for electric vehicles and growing competition from China.
The German car manufacturer in his statement also stated that the reduction of employment is to be implemented by the end of 2029. The purpose of these drastic employment cuts is to increase “productivity and flexibility.”
There will be no forced exemptions
The president of the board of Gernnot Döllner said that there would be no forced releases by the end of 2033. The currently applicable work safety program, which prevents forced release, will therefore be extended until the end of 2033. It had previously been in force until the end of 2029.
Instead, it is expected that Employment reductions before 2029 will take place in the form of voluntary departures and termination of contracts.
German automotive sector under pressure
Reduction of employment in Audi is the latest blow to the declining sector in the largest economy of Europe, which for decades was a pearl in the industrial crown of Germany.
The industry suffered strongly due to slow transition to electric cars and strong competition from China. In addition, the weakening of the demand for cars and threats of American duties was additionally weakened by the already limping German economy.
Audi is not the first company from the automotive industry that introduces the Cieć program. Recently Mercedes-Benz announced its cost reduction plan. The company obtained the consent of the company’s council to offer employees with severance pay and a reduction in planned wages of remuneration by half. As part of a wider program, the company also plans to reduce jobs, but, as she assured, production workers will not be covered by these activities.
Earlier, Volkswagen announced his cost reduction plans. The Management Board of VW wanted to close factories, reduce thousands of jobs and a 10 % wage reduction. After months of turbulent negotiations and a strike of trade unionists with IG Metall, a compromise was concluded, which saved jobs in exchange for no increases.
