A MAJOR car brand is preparing to axe 7,500 jobs in a huge cost-saving drive.
Audi is planning to slash the huge number of roles at its German sites by 2029 as part of a broader plan.
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The Volkswagen-owned manufacturer said its new measures should save the firm 1 billion euros (£842.5 million) per year in the medium term.
The job cuts represent about 8.6 per cent of Audi’s global workforce, according to the automaker’s website.
Audi said in a statement: “The economic conditions are becoming increasingly tougher, competitive pressure and political uncertainties are presenting the company with immense challenges.”
The company, which has its base of operations in the Bavarian city of Ingolstadt, said the cuts would be in areas such as administration and development.
The cuts would be carried out in a “socially responsible” manner, meaning there would be no compulsory redundancies, said a spokesperson.
Instead, workers will not be replaced when they retire or leave.
However, Audi is also investing a total of 8 billion euros (£6.7 billion) in its German sites in the next four years.
The premium carmaker plans to make a new entry-level electric model at its Ingolstadt plant, and is considering a further model in its second German site of Neckarsulm, it said.
Gernot Döllner, Audi’s chairman, said: “We are setting Ingolstadt and Neckarsulm up to be robust and flexible for the challenging transition to electric mobility.
“Audi must become faster, more agile, and more efficient. One thing is clear: this cannot be done without personnel adjustments.
“Together, we will match the personnel measures to the scope.”
It comes after Audi’s parent company Volkswagen announced in December it would cut 35,000 jobs at its VW brand in Germany by 2030.
Volkswagen will cut the jobs by 2030 following discussions with unions – but will now not be closing any plants.
The ‘Future Volkswagen’ agreement was thrashed out between the IG Metall and the Works Council, as the car maker looks to cut labour costs by €1.5billion (£1.25billion) per year.
Volkswagen described the measures agreed on as a “socially responsible reduction in the workforce”.
The firm will also reduce its capacity of 734,000 units across its German plants.
Meanwhile, Porsche announced plans to axe thousands of jobs as it battles high costs and weak demand in China.
The luxury carmaker will cut about 2,000 fixed-term contracts on top of the 1,900 already announced.
The downsizing move will reduce the German company’s headcount by almost 10 per cent.
The automobile manufacturer said it will enter negotiations with unions in the second half of the year over further cuts.
Citing a “persistently challenging environment”, the company also pared back its medium-term margin target to 15-17 per cent from 17-19 per cent
