Audi will slash 9,500 jobs to save $6.6 billion by 2029

Audi announced a major restructuring scheme following a meeting with labor representatives, slashing around 9,500 jobs by 2025 in an effort to adopt production to the electric vehicle era and achieve cost savings of $6.6 billion (6 billion euros).

"The resulting savings of around 6 billion euros will secure the strategic operating profit margin corridor of 9 to 11% and will be invested in projects of the future such as electrification and digitalization," the company said in a statement. Audi said that the cost savings would be achieved by 2029.

The cuts will primarily be through employee turnover and a new, attractive early-retirement program, says Audi.

The automaker says "some job profiles will no longer be needed and new ones will be created." That means around 2,000 new positions will be added, focused on electric mobility and digitalization. That puts the net job losses at around 7,500 workers.

The automaker plans to have annual production capacity of 450,000 vehicles at its plant in Ingolstadt and another 225,000 at its plant in Neckarsulm.