German automotive supplier Aumovio announced plans on Tuesday to eliminate up to 4,000 positions worldwide by year's end as part of a restructuring of its research and development operations, according to Reuters.
The job cuts will affect employees across six countries: India, Singapore, Romania, Serbia, Germany, and Mexico, Reuters reported, citing a company statement.
In Germany, Aumovio has begun discussions with employee representatives about reducing positions in what the company describes as "the high hundreds," Reuters said. The supplier plans to explore alternatives aimed at improving efficiency and will introduce a voluntary redundancy program at German sites starting in early March.
The company, which separated from tire manufacturer Continental last year in a significant corporate reorganization, is working to streamline its technology portfolio and consolidate its operations, according to Reuters.
Germany's automotive supply industry faces mounting pressure as it navigates the technological transition to electric vehicles and software-driven features such as autonomous driving, while simultaneously confronting intense competition from Chinese manufacturers, Reuters noted.
Aumovio cited automation as a key factor behind the reduced staffing needs in its development divisions, according to the report.
"We are focusing on value-creating technologies, investing in future-oriented fields, and leveraging both new and proven partnerships," CEO Philipp von Hirschheydt said in a statement reported by Reuters.
The company maintained its target of lowering its research and development expense ratio to below 10% by 2027, down from 11.9% in the third quarter of 2025, Reuters reported.