9,500 Workers at Luxury Carmaker, Audi, to lose their jobs to machines

Volkswagen AG’s premium brand, Audi, plans to cut 9,500 jobs in its German plants, as part of an overhaul to improve earnings by around 6 billion euros ($6.61 billion).

“The resulting savings of around €6 billion will secure the strategic operating profit margin corridor of 9 to 11 percent and will be invested in projects of the future such as electrification and digitalization,” the company said in a statement.

Measures such as voluntary resignations and a policy not to fill vacancies will be implemented and no one will be fired.

Machines working on a vehicle at Audi’s manufacturing plant

The remaining approximately 50,000 employees in Germany will have job guarantees until end-2029 and Audi will create 2,000 new jobs to develop future technology like electric cars and digital offerings.

Audi’s overhaul is aimed at regaining ground lost to luxury-car leaders Mercedes-Benz and BMW AG. Parent Volkswagen AG picked Markus Duesmann, 50, as the brand’s new chief to replace Bram Schot.