Audi Is Laying Off 7,500 People

It's also investing billions into its German facilities, with plans to build a new entry-level EV at its Ingolstadt plant.

Photo by: Audi

By: Anthony Alaniz

Mar 17, 2025 at 4:30pm ET

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The cuts keep coming. Audi has announced that it will lay off 7,500 employees by 2029 with the intent of increasing the speed, productivity, and flexibility of its Ingolstadt and Neckarsulm facilities. The automaker says the move will achieve more than €1 billion ($1.1 billion at today's exchange rate) in annual savings.

Audi will also invest €8 billion ($8.7 million) into its domestic facilities through the end of the decade. It will add another entry-level electric product at Ingolstadt and prepare its Neckarsulm site for digitization and artificial intelligence. Audi will also set up a €250 million ($273 million) "future fund" that will allow the company to set up new production platforms for future EVs at the plant.

According to Audi:

"The economic conditions are becoming increasingly tougher, competitive pressure and political uncertainties are presenting the company with immense challenges."

Photo by: Audi

Uncertainties around EV mandates in the United States and cheap Chinese electric cars are putting pressure on Audi and Volkswagen Group's financials and future. The threat of tariffs, which could cause the luxury brand to shift production stateside, and a worsening economic outlook aren't helping either.

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Audi says it'll base the layoffs on "target scenarios" that'll reduce bureaucracy to "accelerate" the brand's development and innovation processes. According to Reuters, which reports that Audi has cut 9,500 production jobs since 2019, the layoffs will come from administration, development, and other similar areas. Audi also extended a job security agreement with its works council at its German sites through 2033 as it plans to build fewer, pricier models.

The automaker announced last month that it would move upmarket, "increasing the prestige, desirability, and perception of the brand," while being "more interested in the quality of the business than the quantity."