Major wave of layoffs at automotive spare parts giant

The recent financial crisis at First Brands Group, which produces automotive spare parts on a global scale, has led the company to enter a restructuring process. The company, which filed for bankruptcy on September 28, 2025, announced a major decision after failing to overcome ongoing financing problems. In this context, a total of 1,267 employees will be laid off.

According to the notification submitted to the relevant authorities in the US state of Ohio on February 27, it has been confirmed that at least four production facilities will be closed and more than 1,200 people will be laid off. In a statement made by the company, it was stated that the search for new investors and the ongoing sales process could not offer any solution to maintain the operations of the facilities planned for closure at this stage.

The difficulties faced by the manufacturer are not limited to this. In addition to the bankruptcy process, it was also noted that the company's senior executives were mentioned in an investigation regarding allegations of multi-billion dollar fraud.

The fact that First Brands Group is losing both its workforce and some of its operational centers during this process could also have significant effects on the supply chain in the automotive sector. Experts emphasize that such developments increase the risk of sectoral contraction on a global scale.

News Source: 12punto