German automaker Audi plans to reduce its workforce in the medium-term by axing thousands of jobs outside of production, particularly the 'indirect roles', reported Reuters, citing Manager Magazin.

The planned job cuts will primarily target indirect roles within the company, particularly in areas like development, where more than 2,000 positions could be affected.

The company aims to achieve a workforce reduction of approximately 15%.

In Germany, the job cuts could impact approximately 4,500 indirect roles.

Audi, a subsidiary of Volkswagen, confirmed to Reuters that the board of management is currently in negotiations with workers' representatives but did not disclose specific numbers regarding the potential job losses.

The decision to downsize comes after Audi experienced a significant decline in profit during the third quarter, partly attributed to high costs related to the anticipated closure of its Brussels plant.

This month, Audi Group reported a 45.8% decrease in profit after tax for the first nine months of 2024, amounting to €2.42bn ($2.6bn), compared to €4.47bn during the same period in 2023.

Revenue also fell by 8.2% to €46.26bn, reflecting challenges such as a difficult macroeconomic environment, market difficulties, and expected restructuring costs, which include potential changes at the Brussels plant.

Earlier this month, Volkswagen CEO Oliver Blume announced a comprehensive cost-cutting programme aimed at addressing “decades of structural issues” within the company.

The measures may involve significant reductions, including factory closures and layoffs, to enhance competitiveness and ensure sustainability.

Approximately €900m has been allocated in the annual report for these initiatives.