Audi said Tuesday it plans to eliminate up to 9,500 jobs in Germany through 2025, as part of a restructuring plan. Meanwhile, the company said it plans to create up to 2,000 new jobs in areas such as electric mobility and digitalization.

The company has extended the guarantee for its remaining employees in Germany until the end of 2029.

The company and employee representatives reached a fundamental agreement with decisions, relating in particular to the optimization of production capacities at the two German plants.

"The 6 billion euros thus generated will secure the strategic targeted return corridor of 9 to 11 percent and will flow into future projects such as electrification and digitalization," Audi said in a statement. The cost savings would be achieved by 2029.

Also, the company expects annual plant capacity to be 450,000 vehicles in Ingolstadt plant and 225,000 vehicles in Neckarsulm plant.

The Ingolstadt site is currently preparing for the production of premium electric vehicles. In Neckarsulm, the all-electric Audi e-tron GT will already drive off the assembly line as of 2020, the company said.

The company added that it would improve its pension plan from 2021 onwards and would recognize additional pension provisions of up to 50 million euros annually for this purpose.

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