Herzogenaurach, Germany - The embattled German car parts company, the Schaeffler group is planning a dramatic cut in its workforce, industry sources told the German Press Agency dpa Friday.

Struggling under a mountain of debt run up as a result of its takeover bid for another German auto parts group Continental, the Schaeffler group is planning to shed 8,000 of its 66,000 worldwide workforce, the sources said.

About 5,000 of the jobs are to be lost in Germany alone, the sources said. The privately owned Schaeffler currently employs about 28,000 people in Germany.

While a Schaeffler spokesman declined to comment on the possible job cuts, dpa understands that details of the staff reductions are to be unveiled next Tuesday.

Schaeffler, which is owned by billionaire Maria Schaeffler and her son, has been called on in particular from Continental produce a concept for the future of the two heavily indebted groups.

Herzogenaurach-based Schaeffler holds a 49-per-cent stake in Continental.

The loan-backed takeover of Continental has left Schaeffler battling to survive the auto industry downturn and led the group calling on the German government to provide it with financial assistance.

Continental is also trying to press ahead with a far-reaching business shakeout amid sharply falling car sales, contracting worldwide auto production and the global recession.

In addition to factory closures, Continental's restructuring plan includes the elimination of about 1,900 jobs over the next 12 months. (dpa)