Audi in deal with workers to slash 9,500 jobs in 5 years

German luxury car maker Audi today announced a major restructuring scheme involving reduction of around 9,500 jobs over the next five years as the carmaker shifts to the e-mobility era.

The phased reduction in jobs, to be effected over a period until 2025, as it adopts production to the e-mobility era, will help the company achieve billion-euro cost savings.
Audi said the platform-oriented allocation of models to plants and optimised plant capacities will make its German sites sustainably fit for the future. At the same time, Audi AG will guarantee jobs for employees agreed upon for the next decade. 
“We have reached an important milestone: The jobs of our core workforce are secure! The extension of the employment guarantee is a great success in difficult times. In addition, the upcoming electrification of the Ingolstadt and Neckarsulm plants underscores the long-term success of both German sites. Important for our co-workers: The Audi profit sharing remains at its high level,” Peter Mosch, chairman of the General Works Council of AudiI AG, said.
“The resulting savings of around 6 billion euros will secure the strategic operating profit margin corridor of 9 to 11% and will be invested in projects of the future such as electrification and digitalisation,” the company said in a statement.
‘’A new era is dawning. Audi is taking sustained action for greater economy, flexibility and secure jobs. The board of management and employee representatives have reached a fundamental agreement within the framework of Audi.Zukunft,’’ the company stated in a release.
The decisions relate in particular to the optimisation of production capacities at the two German plants and socially responsible workforce adjustments while extending job guarantee up to the end of 2029. 
This is expected to result in cost savings of about 6 billion euros, the strategic targeted return corridor of 9 to 11 per cent and will flow into future projects such as electrification and digitalisation. ‘’Audi.Zukunft will sustainably strengthen the competitiveness of the Four Rings and will make the company fit for the coming years.’’
The agreement takes effect on 29 November 2019 and applies for the next ten years. Audi said that the cost savings would be achieved by 2029.