ANKARA

German car parts maker Schaeffler announced Tuesday that it will cut 4,700 jobs in Europe, citing challenges in the automotive industry.

"The decision comes in response to the challenging market environment, the increasing intensity of global competition, and ongoing transformation processes affecting the automotive supply industry," Schaeffler said in a statement.

The company will lay off 2,800 people across 10 locations in Germany and close two sites.

The structural measures aims to save around €290 million ($316 million) annually by the end of 2029.

Schaeffler also announced that its adjusted earnings before interest and tax (EBIT) plunged 45% year-on-year to €187 million in the third quarter of 2024.

The announcement follows last week’s unprecedented announcement by German automaker Volkswagen that it would close at least three plants in the country and cut thousands of jobs.