BMW will not be extending the contracts for 10,000 of its contract workers, an insider familiar with the matter told Reuters. The Bavarian automaker is in the midst of implementing cost-cutting measures, chief of which is to reduce capacity.

Besides that, BMW is also temporarily ending its tech alliance with Mercedes-Benz, a move that was supposed to see both carmakers develop next-generation technologies for driver assistance systems, automated highway driving and automated parking to Level 4 standards. The goal was to introduce these systems into passenger cars by 2024, with each of them implementing said technologies independently in their respective vehicles.

“Following extensive review, the two companies have arrived at a mutual and amicable agreement to concentrate on their existing development paths, which may also include working with new partners,” the companies said in a joint statement.