Automotive technology supplier Aumovio SE is set to eliminate up to 4,000 research and development positions globally. This significant workforce reduction is a strategic move to control costs in response to a difficult market environment and escalating competition within the automotive sector.
Key Takeaways
- Aumovio plans to cut up to 4,000 R&D jobs worldwide.
- The company cites a "challenging" market and increased competition as reasons for the cuts.
- Reductions are expected to be completed by the end of 2026, with a voluntary redundancy program in Germany starting in March.
- This move follows Aumovio’s spin-off from Continental AG and a recent downgrade in sales guidance.
Strategic Cost-Cutting Measures
The German auto supplier’s decision to reduce its workforce comes as the sector faces pressure from sluggish demand in Europe and growing competition from Chinese manufacturers. Aumovio aims to implement these cuts in a "socially responsible" manner, including a voluntary redundancy program for its German employees commencing in March.
Market Pressures and Future Outlook
This announcement follows Aumovio’s spin-off from Continental AG in September and its subsequent listing in Frankfurt. The company had previously lowered its sales forecast in November, attributing it to weaker demand in certain regions. CEO Philipp von Hirschheydt emphasized that the company is prioritizing increased efficiency and safeguarding its market position amidst these challenging conditions.
R&D Spending Realignment
The job cuts are part of a larger strategy to decrease Aumovio’s research and development expenditure to below 10% of its revenue by 2027. Currently, R&D spending stands at 11.9% of revenue as of the third quarter of 2025. This realignment aims to bolster the company’s financial health and competitive standing in the evolving automotive landscape.
Sources
- Automotive Technology Supplier Aumovio to Cut 4,000 Jobs, Transport Topics.
Founder Dinis Guarda
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