BERLIN (Reuters) – German autos supplier Brose Group said on Thursday it was cutting 2,000 jobs 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 Sauernheimer 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 <CONG.DE> said it would cut jobs and close plants over the next 10 years as it faces a slowing global auto sector.
(This story has been refiled to fix spelling of Sauernheimer in paragraph three).
(Reporting by Riham Alkousaa; Editing by Mark Potter)