German automobile brand Audi plans to cut 9,500 jobs in Germany through 2025 as part of a restructuring plan to make the company leaner and more sustainable, German media reported Tuesday .

At the same time, Audi plans to create 2,000 jobs in innovative areas such as electric mobility.

“We are now tackling structural issues in order to prepare Audi for the challenges ahead,” CEO Bram Shot said about the changes. “In times of upheaval, we are making Audi more agile and more efficient.”

Audi employs 60,000 people in Germany and will grant 50,000 of its domestic employees an employment guarantee through the end of 2029.

Audi is owned by automobile giant Volkswagen, which faced a major controversy due to a diesel emissions scandal in 2015. The company had admitted to manipulating its diesel engines to circumvent U.S. environmental regulations, forcing the company to recall various Audi and Volkswagen models and pay billions of dollars in penalties. The scandal also forced then-CEO Martin Winterkorn to step down in 2015.

Audi has lost ground in recent years to competitors such as BMW and Mercedes Benz, which are also based in Germany. Audi has attempted to stage a comeback by making a foray into the electric vehicle market, with the company releasing the fully electric SUV Audi e-tron last spring.

Within the next two years, Audi plans to release five fully electric vehicles and seven hybrid plug-in models.

RELATED STORIES
Germany