MC EXCLUSIVE Layoffs hit GCCs as auto tech firm AUMOVIO plans 1,000 job cuts in India

AUMOVIO said most of the measures are expected to be implemented by the end of 2026 and will be carried out in a socially responsible way.

Layoffs have hit India’s Global Capability Centres (GCCs) with Germany-based automotive technology firm AUMOVIO confirming plans to cut about 1,000 positions in India as part of a global overhaul of its research and development (R&D) operations.

“We are specifying our R&D strategy to sharpen our focus on market-leading technologies, accelerate development in areas such as software-defined vehicles (SDV), intensify technology partnerships, and increase overall efficiency,” AUMOVIO said in response to Moneycontrol’s queries, after sources indicated that India-based R&D teams were likely to be impacted under a broader global restructuring programme.

AUMOVIO is a former part of Continental, which is best known as one of the world’s largest automotive suppliers, making tyres, braking systems, electronics, and advanced driver-assistance technologies for global carmakers. Currently, the spin-off company now develops sensors, braking/comfort systems, and AI-driven Advanced Driver Assistance Systems (ADAS) to enhance safety and reduce driver error.

Meanwhile, the company added that communication with employees has been completed in line with local procedures and legal requirements. Most of the measures are expected to be implemented by the end of 2026 and will be carried out in a socially responsible way.

With around 6,000 employees in India, the planned reduction implies that nearly 16-17 percent of the company’s local workforce will be impacted, making India one of the most affected geographies in the global exercise.

Globally, AUMOVIO expects the measures to impact up to 4,000 positions across locations, including India, Singapore, Romania, Serbia, Germany, and Mexico. The company said the changes are part of a broader reset of its R&D strategy as market conditions and technology priorities shift.

Moreover, it is an effort to refocus R&D spending on value-creating and market-leading technologies, intensify development partnerships, and improve overall efficiency, the company said. AUMOVIO's target is to bring its R&D expenditure to below 10 percent of sales by 2027, compared with 11.9 percent in the third quarter of 2025.

Pareekh Jain, CEO and Lead Analyst at EIIRTrend, said the global auto sector is facing pressure from macroeconomic headwinds, tariff uncertainty, rising competition from China, and a lack of clarity on EV policies, leading to layoffs across automakers and suppliers. He added that while job cuts initially hit the US and Europe, they are now extending to India, including across GCCs in multiple sectors.

“As corporates cut jobs, Indian GCCs are not spared, especially as they are no longer set up purely for cost savings,” Jain added.

In 2024, Aumovio generated sales of €19.6 billion (about Rs 1,76,400 crore) and had an R&D spending ratio of 11.9% of sales (around €2.3 billion or Rs 20,700 crore) as of Q3 2025.

“By improving our R&D ratio, we safeguard our technology leadership and ensure continued investment in future-ready innovation,” the company added.

India has emerged as a key hub for global automotive R&D and software development, and the planned cuts at AUMOVIO highlight growing cost and productivity scrutiny at multinational GCCs, even as companies continue to bet on software-led mobility and advanced automotive technologies.

In May 2025, Moneycontrol had reported that American financial services firm Wells Fargo is shutting its Chennai GCC and has allowed employees to move to Bengaluru or Hyderabad by Q4FY27.