Audi Layoffs: German Automaker Plans To Lay Off Thousands of Employees Outside Production, Says Report
Audi reportedly plans to cut thousands of indirect jobs, focusing on development, due to falling profits and high expenses linked to financial struggles and high expenses.
New Delhi, November 9: Audi, the German automaker, is reportedly planning to cut thousands of jobs outside of its production lines. The upcoming job cuts will likely focus on indirect roles within the company. It may include positions in areas such as development, where it is estimated that over 2,000 jobs might be impacted. These changes can be seen as part of a strategy to streamline operations and improve efficiency.
As per a report of Reuters, Audi plans thousands of job cuts outside production. The layoffs might focus primarily on indirect roles, especially in the development department. As per reports, the company is targeting a reduction of about 15 per cent in its workforce. The job cuts will mainly target indirect jobs within the company. As per reports in the development department, more than 2,000 employees could be affected. Specifically in Germany, the layoffs are expected to impact around 4,500 indirect roles. Tech Layoffs 2024: Samsung, Mozilla, X, TikTok, Qualcomm and Others Significantly Reduce Their Workforce This Year, Thousands of Employees Lose Jobs.
According to a report of Yahoo Finance, the decision to reduce the workforce is a result of Audi facing a major drop in profits during the third quarter. The company has linked this decline to high expenses associated with the planned closure of its plant in Brussels. As a response to these financial difficulties, the company has reportedly planning for layoffs. Avaya Layoffs: US-Based Tech Company Lays Off Several Employees in Its Latest Round Amid Ongoing Struggles.
This month, Audi Group reportedly announced that its profit after tax dropped by 45.8 per cent for the first 9 months of 2024, reaching EURO 2.42 billion ( around USD 2.6 billion). It can be seen as a significant decrease compared to EURO 4.47 billion during the same time last year in 2023. Additionally, the company's revenue fell by 8.2 per cent to EURO 46.26 billion. The board of management at Audi was reportedly in discussions with representatives of the workforce. However, they did not provide any details about the potential number of job losses.
(The above story first appeared on LatestLY on Nov 09, 2024 05:29 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).