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Due to the promotion of the global electrification era, how to transform has become one of the major issues for multinational car companies to consider. In the face of high R & D costs, layoffs have become the main way for car companies to reduce costs and increase efficiency.

Netizens have revealed that Volkswagen's Audi brand will cut thousands of jobs to finance the transformation of electric vehicles, but negotiations with labor representatives have reached an impasse. Audi, which employs 61000 people in Germany, is pushing for 4000-5000 layoffs. Audi and the Labor and Employment Commission declined to comment on the news.

In fact, as early as March this year, Audi announced that it would cut costs by $17 billion in the future, cut 10 per cent of management positions and increase investment in electrification, although the final plan has not yet been decided. In addition, Audi plans to invest more than $15 billion in electrification by 2023 to promote the development of electric cars, digital and self-driving technologies.

On the product side, Audi said that future market-specific gearboxes, engine combinations and certain models will be cut, directly reducing the product portfolio by 27%, and will be further cut, eventually reducing the number of models by 45%.

Audi's revenue in the first three quarters of this year was 41.3 billion euros (325.01 billion yuan), down 6.8 percent from 44.3 billion euros in the same period last year, while operating profit was 3.239 billion euros (25.45 billion yuan), up 12.8 percent from 2.871 billion euros in the same period last year.

It is not difficult to see from the financial data that Audi is in a state of recovery. Audi said the decline in revenue was mainly affected by financial indicators and the decline in global sales was affected by adverse factors such as the implementation of global light vehicle test procedures, the replacement of new models and the depressed economic environment. In addition, the fine caused by the "emission gate" scandal has also increased the burden on Audi.

Daimler, another luxury brand carmaker, also announced its latest strategy last week, with plans to cut costs by $1.1 billion by 2021 and cut 1100 management positions worldwide, accounting for about 10 per cent of its total management.

A poor start to 2019, especially due to emissions gate recalls and fines, led to a loss of $1.3 billion in the second quarter, Daimler's first loss since 2009. So far, Daimler has cut its profit target three times and said its pre-tax profit in 2019 will be basically flat in 2018.

However, Daimler's situation has improved. According to Daimler's latest financial results, revenue in the third quarter of this year was 43.27 billion euros, up 8% from a year earlier; profit before interest and tax was 2.69 billion euros, up 8% from the same period last year; and Daimler Group's net profit was 1.813 billion euros, up 3% from a year earlier.

Although Daimler has cut its profit target three times this year, its development in electrification is firm. On November 8th, Mercedes-Benz officially launched its first all-electric SUV-EQC, and according to plans, Daimler will launch 10 all-electric cars by 2022. By 2030, sales of Mercedes-Benz brand electric cars will reach 12.7 million.

BMW's layoff plans are different from those of Mercedes-Benz and Audi. In March, BMW Group launched a cost-cutting plan of 12 billion euros, and BMW said it would achieve faster and more streamlined processes and structures to improve efficiency.

In September, BMW revealed plans to cut 6000 jobs in Germany by 2022 as part of its cost-saving measures. But instead of forcing layoffs until 2020, cost savings will be achieved by reducing the working hours of 5700 professional employees from 40 to 35 hours a week.

In addition, in order to cut costs, the BMW Group plans to eliminate the resulting models and reduce the research and development time to 1/3. Peter, chief financial officer of BMW Group, said: "the automotive industry is undergoing rapid transformation and sustained high profit margins are essential if we are to continue to drive change."

However, in the current environment of decline in the car market, the first-tier luxury car market is growing against the trend. The cumulative sales of Mercedes-Benz, BMW and Audi from January to October this year were 591002, 587417 and 551194, respectively, up 5.0%, 13.8% and 2.1% from a year earlier.

In terms of sales data, the Mercedes-Benz brand is still ahead of BMW and Audi, but there is little difference between BMW and Mercedes-Benz, and BMW is the fastest-growing of the three brands.

To be sure, for Mercedes-Benz and BMW Audi, "reducing costs and increasing efficiency" has become one of the main ways to deal with the current severe market performance electrification development.

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