The cuts will mostly happen “along the demographic curve” – through employee turnover or an early-retirement program.
Audi said that the layoffs would save the company $6.6 billion that it will use for “electrification” and “digitalization” in its future projects.
The luxury carmaker plans to create 2,000 new “expert position” for electric vehicles. It will prioritize filling these positions from within the company and look outward to fill any remaining roles.
Work Council Enforces Favorable Terms For Employees
As the Wall Street Journal noted, Germany’s laws require companies to fill half of the non-executive supervisory board with non-management level employees — giving them a better bargaining position when it comes to job cutting.
The terms that the Audi’s Work Council agreed to require Audi to guarantee that there would be no layoffs in the next ten years, i.e., until November 29, 2029.