(CercleFinance.com) – Continental announced on Wednesday that it planned to eliminate some 1,750 positions in its research and development (R&D) activities devoted to automobiles in a bid to reduce its costs.
These measures, which must be implemented by the end of 2025, aim to consolidate the number of units dedicated to research, currently numbering 82, through better use of resources and the establishment of synergies.
Of the 1,750 job cuts planned worldwide, around 380 will concern its mobility software subsidiary Elektrobit, the company specifies.
In a press release, Conti specifies that these initiatives are part of the ‘Lead – Focus – Perform’ strategic plan which was presented during the investor day last December.
This program aims in particular to reduce the share of R&D expenses to less than 10% of turnover in the medium term, compared to around 12% last year.
In November, the German automotive supplier had already announced its intention to reduce its administrative teams by around 5,400 positions in order to reduce its annual costs by around 400 million euros by 2025.
On the Frankfurt Stock Exchange, Continental shares barely gained 0.1% on Wednesday following these announcements.
According to its latest annual report, the group employs nearly 200,000 people in around fifty countries.
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