Omowei to Cut 4,000 Jobs Globally Amid EV Market Challenges

[Company News] German automotive parts giant Omowei has announced plans to cut 4,000 jobs worldwide.

Key Development: Multi-Country Job Cuts to Be Completed by End of 2026

Omowei plans to complete the layoffs by the end of 2026, affecting operations in India, Singapore, Romania, Serbia, Germany, and Mexico. Hundreds of positions will be eliminated in Germany alone, and the company is currently negotiating with employee representatives on alternatives to minimize domestic job losses.

Key Metrics: R&D Spending Targeted Below 10%

In Q3 2025, its R&D expenditure stood at 11.9% of revenue, with a target to reduce it to below 10% by 2027. Earlier, by the end of 2025, the company had already cut 641 jobs across three countries.

Strategic Context: Dual Pressure from Shrinking Orders and Cost Disadvantages

Omowei faces mounting pressure on product cost-competitiveness due to automaker production cuts (e.g., Ford Europe reporting an annual EV loss of €1.2 billion) and European electricity costs being three times higher than those in China. Additionally, the company remains heavily reliant on Asian supply chains for key technologies.