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Audi set to slash 9,500 jobs in Germany

German luxury carmaker Audi said Tuesday it planned to slash 9,500 jobs in Germany by 2025 as part of a massive overhaul to help finance a costly switch to electric vehicles.

Published: 26 November 2019 14:22 CET
Audi set to slash 9,500 jobs in Germany
The Audi headquarters in Ingolstadt

The job cuts will be achieved through an early retirement programme and natural turnover, the company said in a statement.

At the same time, the Volkswagen subsidiary said it would create 2,000 new jobs in the areas of electromobility and digitization as it pivots to the smarter, cleaner cars of tomorrow.

The shake-up comes as Audi, like other carmakers, grapples with slowing demand in a weaker global economy, tougher pollution rules and the huge investments needed for the battery-powered era.

“In times of upheaval, we are making Audi more agile and more efficient,” said CEO Bram Schot.

“This will increase productivity and sustainably strengthen the competitiveness of our German plants.”

The remaining roughly 50,000 workers at Audi's Ingolstadt and Neckarsulm factories will have job security until the end of 2029 under the hard-fought deal struck with labour representatives.

“We have reached an important milestone,” said Peter Mosch, head of Audi's works council.

“The extension of the employment guarantee is a great success in difficult times.”

Audi said the reorganization would help boost earnings by €6 billion by 2029, keeping the premium brand on track to reach a profit margin of nine to 11 percent.

READ ALSO: German car parts giant Continental to cut 5,500 jobs

At the same time it has ramped up spending on new technologies, including battery-electric and hybrid vehicles, connectivity and autonomous driving.

Like other brands in the Volkswagen group, it is still struggling to turn the page on the dieselgate scandal — stunning revelations that the carmaker giant fitted illegal “defeat devices” to fool regulators' emissions test

New CEO

The jobs cull comes after Audi was hit by falling sales, revenues and operating profits over the first nine months of 2019.

But the company is far from alone in feeling the pain from an industry in the throes of transformation and buffeted by the knock-on effects from US-China trade tensions and Brexit uncertainty.

German car parts suppliers Bosch and Continental have themselves announced thousands of job cuts to slash costs, while Mercedes-Benz maker Daimler is reportedly planning to axe 1,100 managerial roles.

Hoping to turn the tide at Audi, the Volkswagen group earlier this month said it had picked former BMW purchasing chief Markus Duesmann to replace Schot as the brand's chief executive from April.

Under Schot, Audi suffered more than other German manufacturers from the introduction last year of strict new emissions testing standards in the European Union, which led to expensive production bottlenecks.

And like its rivals, Audi is spending billions on new technologies, including battery-electric and hybrid vehicles, connectivity and autonomous driving.

But the firm last year also had to pay an 800-million-euro fine over its role in the “dieselgate” scandal.

The saga erupted in 2015 when the Volkswagen group admitted to installing cheating devices in 11 million diesel cars worldwide to dupe regulatory emissions tests.

Audi's engineers are suspected of having helped develop the software used to make cars emit less pollutants under lab testing conditions than on the road.

By Yann Schreiber

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Published: 7 February 2024 10:54 CET
Updated: 10 February 2024 08:20 CET
Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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