Due to the weakening car market and high costs, German headlamp manufacturer Hella announced on Wednesday that it intends to cut 420 jobs by mid-2026.
The cuts relate to the plant at the company's headquarters in the Westphalian town of Lippstadt, which currently has around 1,000 jobs and is making losses.
In future, only headlamps are to be manufactured there, while the production of combination rear lamps and interior and body lighting is to be relocated to other Hella sites in Europe.
Production levels at the Lippstadt plant need to be increased and the cost base reduced, the company said, adding this will strengthen competitiveness.
According to the company, the job cuts are to be carried out in a manner that is "as socially acceptable as possible."
The company, which celebrated its 125th anniversary just over a fortnight ago, has around 37,500 jobs worldwide, of which almost 8,000 are in Germany and 4,200 in Lippstadt.
The French automotive supplier Faurecia acquired around 82% of the shares in Hella at the beginning of 2022, after which the joint umbrella brand Forvia was created.
The German company is now known as Forvia Hella and is listed on the stock exchange as Hella GmbH & Co KGaA.