Audi has confirmed it will let go of 9500 workers at its German factories between now and 2025.
Under the company's latest plan dubbed Audi.Zukunft, or Audi.Future in English, the cuts are projected to free up around €6 billion ($9.8 billion), which will be used to fund electric vehicle and digital technology development.
Audi claims it will target job losses along a "demographic curve", and hopes turnover and an "attractive early-retirement program" will minimise the number of forced redundancies.
The luxury carmaker says it will reduce its management workforce by a similar percentage. In a trade off with unions, the company will guarantee the jobs of its "core workforce" until the end of 2029.
Thanks to its continued focus on electrification Audi expects to create around 2000 new jobs within, while the future of the Ingolstadt and Neckarsulm factories have been secured for the long term as they will both have the ability to manufacture electric vehicles.
Above: Audi e-tron GT concept.
Some of these changes were already under way before today's announcement, with the Neckarsulm plant already confirmed as the production site of the upcoming e-tron GT, which is based on the Porsche Taycan.
Audi isn't the only German luxury automaker trimming its workforce. Earlier this month, Daimler, which owns the Mercedes-Benz brand, announced it will cut 10 per cent of its management headcount in order to save around €1.3 billion ($2.1 billion) and continue its electrification drive.