Audi is to axe "up to 9,500" jobs as it converts its key Ingolstadt and Neckarsulm plants in Germany to electrified vehicles, saving EUR6bn in the process.
The automaker has agreed a new deal, dubbed Audi.Zukunft [Audi.Future] with its works council which also extends the employment guarantee for the remaining workforce up to the end of 2029.
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The cuts "will take place along the demographic curve – in particular through employee turnover and a new, attractive early-retirement programme", Audi said in a statement.
"An equivalent percentage staff reduction will take place in management. Nonetheless, Audi will continue to recruit in the coming years. The company plans to create up to 2,000 new expert positions in areas such as electric mobility and digitalisation. Those appointments will be made on the principle of internal before external candidates."
Peter Mosch, chairman of the works council, said: "We have reached an important milestone: The jobs of our core workforce are secure! The extension of the employment guarantee is a great success in difficult times. In addition, the upcoming electrification of the Ingolstadt and Neckarsulm plants underscores the long-term success of both German sites. Important for our co-workers: The Audi profit sharing remains at its high level."
Ingolstadt capacity will be 450,000 vehicles plus 225,000 at Neckarsulm. Audi said the plans to build electric models at both plants guarantees their future.
Ingolstadt is preparing to make premium electric vehicles while Neckarsulm will build the all-electric e-tron GT in 2020.
Other production lines will gradually be retooled for electrified models.
Rolf Klotz, chairman of the Neckarsulm works council said: "We are thus securing the future viability of the Neckarsulm plant."
Audi expects to save EUR6bn from the job cuts and has allocate EUR300m to an 'Electrification Neckarsulm' fund to 'electrify' the factory by 2025.
Workers who survive the cull will continue to enjoy profit sharing. If group operating profit is significantly higher than in previous years, negotiations will be held on a rise. The company also will improve its pension plan from 2021 onwards and will book additional pension provisions of up to EUR50m a year for this.
The Audi Transformation Plan launched two years ago is expected to free up EUR15bn for future projects up to 2022 with 80% already allocated.
Audi.Zukunft now addresses structural issues, Audi said.
"The decisions taken together with the employees are an important and courageous step for long-term competitiveness and profitability," the automaker added.
