Continental said it would cut around 3,000 research-and-development jobs in its automotive segment because of a challenging market environment. The German car-parts company on Tuesday said the cuts amounted to around 10% of its global research-and-development jobs.

Continental AG is cutting around 3,000 research and development jobs at its automotive unit as the German parts maker prepares to spin off the struggling business.

The decision, which follows a previously announced reduction of 7,000 jobs, is aimed at optimising the company’s global R&D network.

Auto supplier Continental plans to shutter one plant in Germany, as the company has fallen short of financial targets, despite earlier cutbacks.

Continental A.G. plans to cut 3,000 research and development positions, or 10 percent of the R&D work force, within its Automotive Group sector by the end of 2026.