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Audi layoffs cut costs by 6 billion euros, Audi China: does not involve the Chinese market

2024-09-17 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)12/09 Report--

According to foreign media reports, Audi issued a statement officially announcing that it will cut 9500 jobs by 2025, accounting for about 10% of the total workforce, a move that will save Audi 6 billion euros in costs over the next decade to support enterprises to accelerate the transformation to electrification and digitization.

In response to the news, Audi China confirmed that the wave of layoffs will not affect business in the Chinese market. Wu Jiabi, the new president of Audi China, said in an interview that the personnel adjustment adopted by Audi's German headquarters is a measure of talent transformation, which is limited to two factories in Germany and does not involve the Chinese market. in the future, we will actively look for corresponding talents in other fields.

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China has become the largest single market of Audi brand in the world. According to the latest sales figures released by Audi, Audi sold 67402 vehicles in China in November, up 16.8% from a year earlier, accounting for 41.3% of Audi's total global sales. From January to November 2019, Audi's total sales in China reached 618596, an increase of 3.5% over the same period last year, accounting for about 36% of Audi's global sales. It is the Audi brand's largest single market in the world.

As for the layoffs, Bram Bram Schot, Audi's chief executive, said that at a critical period of structural reform, Audi's decision-makers were working to make the team more flexible and efficient, which would enhance Audi's sustainable competitiveness in the market.

Not only Audi, but many other car companies have also announced plans to cut jobs and cut costs, and the cold winter of the global car market is quietly approaching.

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In 2019, Daimler AG announced layoffs, and by the end of 2022, Daimler will cut at least 10000 jobs worldwide, including about 10 per cent of its managers. The layoffs are equivalent to 3 per cent of Daimler's global workforce.

BMW Group, one of the three German luxury brands, proposed a cost cut of 12 billion euros (93.9 billion yuan) in March, cut bonuses for German employees and considered cutting 6000 jobs.

The president of the German Automobile Industry Association predicted that workers in the automobile industry are about to usher in a cold winter. He said layoffs in the German auto industry would be more pronounced next year. This round of layoffs in the auto industry is caused by multiple factors.

Nissan's performance has fallen sharply, and the company has announced global layoffs of 12500 jobs, or about 10 per cent of Nissan's global workforce, by 2022. The move is designed to reverse the decline of the business. In the first half of fiscal year 2019, Nissan's net profit plunged 73.5% to 65.3 billion yen, the lowest in a decade. Nissan expects net profit in fiscal 2019 to fall by more than one year from a year earlier.

A number of other American auto companies, including General Motors and Ford, have previously announced corresponding spending cuts, and factory closures have continued to lay off workers.

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