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

Published 10/17/2019, 06:04 AM
© Reuters.  German car parts supplier Brose to cut 2,000 jobs as auto sector struggles
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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:CONG) 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)

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