BERLIN, Germany: Audi has announced plans to cut up to 7,500 jobs in Germany by 2029 as part of a broader restructuring aimed at reducing costs and increasing efficiency.

The layoffs, which will primarily affect administrative and development roles, come amid mounting financial pressure on Volkswagen Group's premium brand.

The job cuts are expected to save Audi approximately 1 billion euros ($1.1 billion) annually in the medium term. At the same time, the automaker is committing 8 billion euros in investments to its German sites over the next four years, the company said on Monday.

The restructuring is part of a larger wave of cost-cutting measures across Volkswagen Group. Audi's layoffs bring the total number of job reductions planned within the company to nearly 48,000. Volkswagen itself is cutting 35,000 positions, Porsche is reducing its workforce by 3,900, and VW's software subsidiary, Cariad, is set to eliminate 1,600 jobs.

Audi has already shed around 9,500 production jobs since 2019, a move originally aimed at freeing up funds to support the transition to electric vehicles. However, the brand has struggled in recent years, with its operating margin plunging to 4.5 percent in the first nine months of 2024 from 7 percent in the same period the previous year. Weak sales in key markets and the costs associated with shutting down production at its Brussels plant have further strained finances.

To reassure workers in Germany, Audi said it will manufacture a new entry-level electric model at its Ingolstadt plant and is considering producing an additional model at its Neckarsulm site. These commitments aim to ease concerns among labor representatives, who fear automakers will move EV production to lower-cost countries.

The company also extended its job security guarantee agreement at its German facilities until the end of 2033.

"The negotiations were tough, but always factual and solution-oriented... we had to make compromises to allow financial flexibility for additional investments," said Joerg Schlagbauer, head of the works council, in a statement.

Audi released its full-year 2024 financial results on March 18.