Aumovio SE said it will cut up to 4,000 research and development jobs across its global operations as it attempts to rein in costs amid what the company described as a "challenging" market environment and intensifying competition.
In a Tuesday announcement, the German auto supplier said the bulk of the workforce reductions are expected to be completed by the end of 2026. The company added that the measures will be carried out in a "socially responsible" manner and highlighted a voluntary redundancy program that will begin in Germany in March.
The planned reductions are the latest such action among German automotive suppliers, which are coping with softer demand in Europe and mounting competition from Chinese manufacturers. Aumovio said the job cuts form part of a broader effort to reduce its research and development spending as a share of revenue, targeting a level below 10% by 2027 after measuring 11.9% in the third quarter of 2025.
The company was spun off from Continental AG in September and subsequently listed on the Frankfurt exchange. In November, Aumovio trimmed its sales guidance, citing weakening demand in certain regions; the company framed the guidance revision as an additional source of pressure for suppliers.
Chief Executive Officer Philipp von Hirschheydt said the company is prioritizing efficiency improvements and protecting its market position in response to the difficult environment.
Management characterized the job cuts as a component of cost-control and strategic repositioning designed to preserve competitiveness while reducing research and development intensity relative to revenue. The company reiterated its intention to execute reductions with social considerations, supplementing compulsory measures with programs intended to allow voluntary departures.
Details on the country-by-country distribution of the roles to be cut and the exact timeline for completing the reductions beyond the company’s broad end-2026 target were not provided in the announcement.
Context and next steps
Aumovio has linked the planned workforce adjustments directly to the need to adapt to the current market backdrop and to meet its internal target for lower R&D intensity. The voluntary redundancy scheme in Germany is set to start in March, and the company expects most of the changes to be in place by the end of 2026.