Automotive supplier Brose said it was "largely" stopping work at most of its European locations beginning late March.
The company said it was responding to a dramatic decline in orders as a result of interruptions in production at many of its customers' sites. The measures are designed to contain the economic damages caused by the corona crisis.
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Most European plants are impacted by the policies. The management board and works councils agreed work at all German locations would largely come to a halt until at least 19 April.
The bargaining agreements comprise short time work and temporary shutdowns which will be implemented on a site by site basis from 27 March.
The company will continue to work on several projects to ensure a viable future.
Many customers are not planning on recommencing production until mid April.
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By GlobalData"The situation is serious. We are taking the necessary measures to save jobs and contain the financial impact of the crisis," said CEO Ulrich Schrickel.
"The shareholders and management board want to thank all of the employees who are working to ensure deliveries particularly to China, Mexico and the US, who are continuing important projects and who are securing essential processes for our business."
In North America, Brose has taken measures to protect employees. These include working from home and staggered shift policies.
Business operations in China have recommenced.
