Automotive supplier Aumovio, which emerged from the split of Continental’s components division, has announced a plan to cut up to 4,000 jobs by the end of 2026. This restructuring, which affects approximately 5% of its global workforce, comes amid a context of sustained weakening of the European automotive industry.
The job cuts will affect several countries where the group operates, including Germany, India, Romania, Serbia, Singapore, and Mexico. Approximately a quarter of the planned reductions are expected to occur at German sites. The company justifies this decision by the need to restore its competitiveness in the face of an increasingly challenging economic environment.
Strategic reorientation and pressure on costs
Aumovio explains that it wants to lighten its cost structure, particularly its research and development spending, in order to bring it below 10% of revenue by 2027. The group now intends to concentrate its investments on technologies considered priorities, such as software-controlled vehicles, automated driving, electronic braking systems and on-board display solutions.
In Germany, a voluntary redundancy program is set to launch this spring, following discussions with employee representatives. This announcement comes as the entire European automotive sector faces increased competition from Asian players and a slowdown in demand for electric vehicles, a context that has already led other major suppliers to reduce their workforce in recent months.
