Audi is set to consolidate its transformation efforts under a newly established department, “Transformation, Consulting and Organisation,” effective March 1, as part of a broader restructuring initiative aimed at streamlining operations and reducing complexity. The changes, however, will come with significant cost-cutting measures, including job reductions.
The German automaker has appointed Yvonne Bettkober, formerly responsible for organizational development at Volkswagen and CARIAD, to lead the new division. Audi CEO Gernot Döllner stated that the move aligns with the company’s “Audi Agenda,” which seeks to enhance efficiency, reduce costs, and boost innovation. The initiative builds upon structural changes introduced earlier this year, including a revamped model series organization to accelerate decision-making.
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“As we navigate current challenges, we need quick action and short decision-making processes,” Bettkober said. “I look forward to helping unlock the full potential of the Audi team.”
Alongside the restructuring, Audi is reportedly implementing a multibillion-euro cost-cutting program. According to Handelsblatt, the company aims to reduce material costs by up to €8 billion by 2030, with annual savings of €1.6 billion.
Additionally, personnel expenses are expected to decrease by €1 billion per year, with job cuts, benefit reductions, and outsourcing measures in the pipeline. While Audi’s job security program prevents layoffs at its German sites until 2029, voluntary redundancies and retirements are likely to play a role in workforce reductions.
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The restructuring comes as Audi faces declining sales, with 1.67 million vehicles sold in 2024, marking a 12% drop from the previous year. The automaker’s electric vehicle sales also declined by 7.8%, making up just under 10% of total deliveries.
Struggles in key markets like China and the U.S. have further pressured the brand, prompting strategic shifts, including plans to sell EVs under a new subsidiary in China and potential U.S. manufacturing considerations alongside Porsche.
Audi’s parent company, Volkswagen, is also undergoing a restructuring, with up to 35,000 jobs expected to be cut under a collective labor agreement. Meanwhile, Porsche recently announced plans to reduce its workforce by approximately 1,900 positions.
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Audi aims to improve profitability through these measures, as its return on sales stood at just 2.5% for the first three quarters of 2024, a figure deemed low by industry standards. The company is expected to release full-year financial results in mid-March.