Audi has announced a landmark agreement aimed at enhancing competitiveness, ensuring job security, and accelerating the transition to electric mobility at its German sites. The agreement, effective immediately, extends job protection until 2033, introduces workforce restructuring, and commits to an €8 billion investment in Ingolstadt and Neckarsulm to future-proof the company amid increasing economic pressures and industry shifts.
Strategic Workforce and Structural Changes
As part of its restructuring plan, Audi will reduce labor costs and cut up to 7,500 jobs in indirect areas by 2029 through a socially responsible process. The company will also streamline operations by flattening management structures, digitizing workflows, and reducing bureaucracy.
Audi CEO Gernot Döllner emphasized that “the agreement strengthens Audi’s competitiveness and long-term future readiness.” He reaffirmed the company’s commitment to efficiency, profitability, and a smooth transition to an electric-first strategy.
Human Resources Board Member Xavier Ros stated that Audi is “focusing its team setup to meet the needs of the future,” ensuring the changes are made in a step-by-step manner while maintaining employee engagement throughout the process.
Workforce Commitment and Investment in Innovation
Despite workforce reductions, Audi is upholding wage agreements, maintaining internal benefits, and continuing apprenticeship programs, ensuring a stable and fair transition. Chairman of the General Works Council Jörg Schlagbauer acknowledged that employees will contribute financially through temporary reductions in profit-sharing, which he described as an investment in Audi’s long-term stability.
The company is also making major investments in digitalization and AI. Neckarsulm will become a key AI and digitalization hub, supporting Audi’s push for smarter production and advanced electronic architecture in combustion vehicles. The site will also benefit from a €250 million “future fund” for new production platforms, potentially introducing an additional model in the future.
Electric Future and Production Expansion
Audi’s €8 billion investment will drive electrification and production expansion at its German sites. Ingolstadt will begin production of a new entry-level electric model, alongside the upcoming Audi Q3, ensuring manufacturing flexibility between EVs and combustion models.
Neckarsulm, in addition to its AI initiatives, will further develop combustion engine electronics and assess opportunities for new production models.
Path to Long-Term Stability
With this agreement, Audi aims to save over €1 billion annually, reinforcing its financial stability while adapting to market changes and evolving technology trends. Vice Chairman of the General Works Council Rainer Schirmer highlighted the collaborative effort between management and labor representatives, ensuring that Audi’s workforce and production sites remain resilient in the face of industry transformation.
With job security extended until 2033, a restructured workforce strategy, and a strong focus on electrification and AI, Audi is charting a bold path forward, ensuring long-term sustainability, innovation, and competitiveness in the evolving automotive landscape.
