- Audi is considering reducing its headcount by 15 percent in an attempt to cut costs.
- The VW Group premium brand will preserve production jobs and cut “indirect” jobs instead, a report claims.
- Audi suffered a fall in third-quarter profits and has already moved to close its Q8 plant in Belgium.
First it was Volkswagen jobs in the firing line, and now the panic has spread to other areas of the VW Group. So says German media, which is reporting that Audi is considering cutting its workforce by 15 percent in a dramatic bid to reduce costs.
The news comes from Manager Magazin, which claims Audi will safeguard production line positions and instead focus its axe-swinging on “indirect” jobs such as development. MM says that would mean 2,000 layoffs, but reductions in other parts of the business would eventually result in 4,500 people looking for a new paycheck.
Related: Audi Group’s Profit Crash 91% In Q3
Audi admitted to Reuters that its board is currently holding talks with workers’ reps, but declined to confirm the report’s estimate of total layoffs. Job losses on Audi’s home turf will give the automaker’s German staff a taste of the uncertainty 3,000 of their colleagues in Brussels, Belgium, have had to endure recently.
The Brussels site responsible for the slow-selling Q8 e-tron will be wound down on February 28, becoming the first VW Group factory to close in Europe. Audi, who has already confirmed it won’t build any future vehicles on the site, claims to have spoken with 26 potential investors about taking on the plant, but says none has presented a suitable business plan.
Audi’s third-quarter sales figures revealed an alarming 21 percent drop in US deliveries to 46,752 units, almost every model experiencing a slump. The only two cars that gained ground were the e-tron GT electric coupe, which enjoyed a modest 5 percent uplift (but to just 673 units) and the Q3 SUV, whose sales swelled by 36 percent to 7,422.
Workers at sister brand VW are fighting a similar battle for survival. Volkswagen bosses have proposed that workers take a 10 percent pay cut and lose certain bonuses to help safeguard their jobs and keep the business in the black.
Sources: Manager Magazin, Reuters