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Car parts supplier Brose to cut 2,000 German jobs as auto sector struggles

Brose Group is a family-owned company and employs 26,000 workers globally.

Reuters  |  Berlin 

IT layoffs
IT layoffs

German autos supplier Brose Group said on Thursday it was cutting 2,000 in Germany over the next three years due to a slump in earnings, blaming a declining Chinese market, changes in the car industry and global price pressure.

The family-owned company, which employs 26,000 workers globally, said the job cuts would reduce hierarchy and simplify the business, adding it was relocating work to low-wage countries to improve competitiveness.

"We want to improve quality ... and reduce costs in the mid three-digit million range to increase our competitiveness," Chief Executive Kurt Sauernheime said in a statement.

In May, Brose launched a savings programme aimed at cutting tens of millions of euros this year after reporting 5% drop in first-quarter revenue and disappointing 2018 results.

Last month, German automotive supplier Continental said it would cut and close plants over the next 10 years as it faces a slowing global

First Published: Thu, October 17 2019. 15:40 IST