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

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 program 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 (DE:) said it would cut jobs and close plants over the next 10 years as it faces a slowing global auto sector.

(This story fixes spelling of Sauernheimer in paragraph three)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.