Carmaker Company Audi has decided to cut 9,500 of its 61,000 jobs in Germany between now and 2025, a step taken to make more money available for electric vehicles and digital working.

BBC news reported that the cuts aim to save €6bn (£5.1bn) – will be achieved through an early retirement programme.

The car industry is facing a downturn in key markets, including China, as well as increased costs as it meets tougher European Union emissions regulations and the costly switch to electric vehicles. Audi saw falling sales, revenues and operating profits in the first nine months of 2019.

In a statement, the Audi management said the job cuts would “take place along the demographic curve – in particular through employee turnover and a new, attractive early retirement programme”.

“The company must become lean and fit for the future, which means that some job profiles will no longer be needed and new ones will be created.”

The carmaker said it would guarantee the jobs of operational workers until 2029.