German auto supplier Aumovio plans to cut up to 4,000 jobs

BERLIN, Jan 27 (Reuters) - German automotive supplier Aumovio AMV0n.DE announced on Tuesday plans to cut up to 4,000 jobs worldwide by the end of the year as it restructures its research and development activities in a challenging market environment.

The cuts are to take place in India, Singapore, Romania, Serbia, Germany and Mexico, the company said in a statement.

Aumovio said it has entered a cooperative dialogue with employee representatives in Germany, where the company sees a need to reduce positions in the high hundreds, with the aim of finding alternatives to boost efficiency.

It also plans to launch a voluntary redundancy programme at the affected sites in Germany from early March.

Aumovio, which was spun off from tyre maker Continental CONG.DE last year in a major overhaul of that company, wants to focus on its technology portfolio and consolidate operations.

German auto suppliers are battling to adapt in a technology race involving the shift to electric vehicles and software-based features like autonomous driving, while facing stiff competition from China.

Aumovio said automation had played a role in the reduced need for positions in the company's development areas.

"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.

Aumovio reaffirmed its goal of reducing its R&D expense ratio to below 10% by 2027, after 11.9% in the third quarter of 2025.