German car supplier Continental has announced it will cut another 3,000 jobs by the end of 2026, the latest sign of weakness in the German automotive sector.

The layoffs will be in research and development activities, the company said, adding that less than half of the cuts will take place in Germany.

Continental said the redundancies would "largely" be implemented through natural turnover, for example in retirements.

"We are continuously improving our competitive advantages in the interest of sustainable market success," said Philipp von Hirschheide, head of Continental's automotive division.

Last February, Continental announced plans to cut 7,150 jobs by 2025.

The company employs about 200,000 people worldwide, about 31,000 of them in research and development.

It also announced it would spin off its automotive components business.

The news comes amid testing times for the European automotive industry, which is struggling with fierce Chinese competition and a shift to electric vehicles.

Sports car maker Porsche has announced 1,900 job cuts due to weak demand for its electric vehicles, and last December Volkswagen reached an agreement with unions to cut 35,000 jobs at its German plants by 2030.

BMW and Stellantis, which own brands such as Fiat and Jeep, have warned investors that their 2025 results will fall short of expectations due to weak demand in China. | BGNES