Audi cuts 9,500 jobs to free up £5billion for electric car development

Audi cuts 9,500 jobs to free up £5billion for electric car development

The car manufacturing giant plans to cut 9,500 jobs in Germany over the next six years to provide funding for electric vehicles and digital working.

The news was released less than two weeks after German carmaker rival, Mercedes-Benz, announced that it aimed to cut more than 1,000 jobs before the start of 2023 as it struggles to reach new and stricter emissions targets.

An early retirement programme will be introduced to the employees being made redundant so that Audi can make £5.1bn available for investment into the more sustainable, green sector of car manufacturing.

The cuts have been made as part of a deal with worker representatives that states two Audi factories in Germany will be overhauled to focus on the creation of electric vehicles. The Neckarsulm and Ingolstadt sites are expected to produce 675,000 cars annually.

On Tuesday, the high-end car brand announced that although approximately 10 per cent of its global workforce would be cut, 2,000 new jobs that focus on electric mobility and other new technology will be created.

The Volkswagen-owned company has guaranteed the jobs of remaining workers until 2029 as Audi plans to invest the next decade into developing cars of the future.

The carmaker released a statement in regards to the latest plans and said that the job cuts would “take place along the demographic curve – in particular through employee turnover and a new, attractive early retirement programme,”

“The company must become lean and fit for the future, which means that some job profiles will no longer be needed and new ones will be created.”

Volkswagen is just one of many global carmakers adjusting their business models to look at transforming the need for gasoline and diesel to electricity.

The group, which also owns Porsche, Bugatti, Skoda and Lamborghini, is currently spending tens of billions of dollars to develop electric or hybrid alternatives of every vehicle in its line-up, with 70 new electric models expected to launch by 2028.

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