Volkswagen's Audi will cut up to 7,500 jobs in Germany by 2029 in areas like administration and development, the premium carmaker said on Monday, the latest German auto industry player to reduce costs.

Effective immediately, the agreement also extends job protection for existing employees until the end of 2033.

According to the automaker’s website, this move affects nearly 9% of Audi’s worldwide workforce. Officials say the job cuts will save the company more than $1 billion. Audi is planning to invest nearly $9 billion into German plants to increase manufacturing of electric vehicles.