Audi Fires 9,500 Of Its Employees To Save Funds For Electric Vehicles

Audi Fires 9,500 Of Its Employees To Save Funds For Electric Vehicles

German carmaker Audi is one of the leading carmakers across the world. The carmaker has recently decided to cut down 9,500 of its 61,000 jobs in Germany. And this cut down in jobs is expected to happen by 2025 and the company is vocal that it is doing so to free up funds for investing in the electric vehicle sector. On the contrary, the luxury car owner Volkswagen is hiring 2,000 people with the hope of exploring the digitalization and electric cars sector. Volkswagen believes that it could save up to $6.6 Billion as part of the campaigning. The restructuring topic came up immediately after the labor representatives and Audi officials had a meeting. Audi has made it crisp and clear that the company is going to reduce workforce from the future and investment point of view.

The operational jobs are going to be safe till 2029 as per Chairman Peter Mosch. The core jobs are definitely safe and the employees who have got an extension during the dicey situation are at peace. The investment in electric vehicles is being worked as the company is eager to increase its capacity in the electric vehicle sector. Audi’s plants in Ingolstadt and Neckarsulm have already started working on the production of electric vehicles. In the coming months, more of its production lines are expected to be equipped to deal with electric vehicles. Mercedes-Benz has also come forward saying that it is cutting down on more than 1,000 jobs. There are plans that Audi will have 1 Million electric vehicles hitting the road by 2025.

Similarly, Audi and its parent company Volkswagen were already in the news for all wrong reasons. The powerhouse of Europe’s largest economy has put the other carmakers such as BMW and Daimler in great jeopardy by moving toward electric car production. China and the US trade war along with the mounting investments on electric is slowing the global economy. Audi is facing challenges like an $881 Million fine over its last year’s “Emissionsgate ” scandal. The new European Union emissions regulations had put its sports cars, sedans, and SUVs in trouble.

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