Auto parts supplier Robert Bosch announced that it would reduce the working hours of almost 10,000 employees in Germany. The world’s largest auto parts supplier said it would also lead to a reduction in the salaries of these employees.

The announcement comes after the company announced on Friday that it would cut up to 5,550 jobs and also reduce the working hours of 450 employees, Reuters reported. This update reflects the slowdown in the German automotive sector which has impacted big names like Volkswagen and Mercedes.

The current situation of the German automobile industry can be attributed to low demand and intense competition from Chinese competitors, which have managed to bring cheaper vehicles to market.

A company spokesperson said on Saturday that staff typically work on 38- or 40-hour contracts at sites in Germany and that those employees will now have their working hours reduced to 35 hours.

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The company previously said the layoffs would affect 5,500 people over the next few years as the auto industry tries to weather headwinds. The company explained that stagnant sales globally and factory capacity exceeding sales prospects have had a significant impact on the industry.

Notably, nearly 3,500 of the planned job cuts will be completed before 2027. These layoffs will affect workers in the advanced driver assistance and automated driving technologies department. Around half of the workforce reductions will affect workers across Germany.

“The automotive industry has significant overcapacity. In addition, the market for future technologies is not developing as initially planned… Currently, many projects in this sector of activity are postponed or abandoned by automakers,” the company said in a statement. official statement earlier.

However, the layoffs are only just beginning and the final figures will be decided after discussions with employee representatives, the company said.