Audi to slash 9,500 jobs in Germany by 2025

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.

The job cuts will be achieved through an early retirement programme and natural turnover at its two German plants, 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 digitisation 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.