The cut represents 8% of the carmaker’s global workforce. It is the latest blow to the German automotive industry, which is already reeling from a stuttering shift to electric cars and stiff competition from China.

Audi announced on Monday that it will cut 7,500 jobs in Germany, citing “immense challenges” as the country’s auto industry battles slowing demand for electric vehicles and rising competition from China.

The slash in jobs, which will have been implemented by the end of 2029, amounts to 8% of Audi’s global workforce and is aimed at boosting “productivity, speed and flexibility,” the German carmaker said in a statement.

“The economic conditions are becoming increasingly tougher, competitive pressure and political uncertainties are presenting the company with immense challenges,” read the statement from Audi, a subsidiary of Volkswagen.

What are the details of the cuts?

Management board chairman Gernot Döllner said: “There will be no compulsory redundancies up to the end of 2033. In difficult economic times, that is good news for all employees.”

The current job security program, which prevents compulsory redundancies, will therefore be extended until the end of 2033. It previously applied until the end of 2029.

Job cuts before 2029 are instead expected to come through voluntary redundancies and end of contracts.

What is going wrong with Germany’s automobile sector?

For decades, the automobile industry has been the jewel in Germany’s industrial crown, but a faltering economy has seen the country’s production dwindle.

Audi’s job cuts are the latest blow for the ailing sector in Europe’s largest economy, which has been hit hard by a stuttering shift to electric cars, fierce competition from China, weak demand and the threat of US tariffs.

Edited by: Wesley Dockery

DW News