In administration and research
Continental is cutting more than 7,000 jobs worldwide
February 14, 2024, 4:03 p.m
Listen to article
This audio version was artificially generated. More info | Send feedback
The job cuts at Continental are larger than last announced. The company announced that more than 7,000 jobs worldwide will be lost. The administration and research sectors are particularly affected. 40 percent of the jobs are located in Germany.
The Continental Group wants to cut around 7,150 jobs worldwide due to its cost-cutting efforts in the weakening automotive supply sector. This corresponds to more than three percent of the total workforce. In addition to the measures already announced in the division’s administration, the plans also affect employees in research and development (R&D), as the DAX company announced in Hanover. There are around 5,400 jobs available in the administrative areas and around 1,750 jobs in the research and development network. In the Rhine-Main area, division manager Philipp von Hirschheydt is also looking into merging locations. Conti wants to reduce jobs gradually and in as socially responsible a way as possible.
Conti had previously announced savings efforts in the ailing car supply sector. According to information from November, the reduction in administrative jobs will reduce annual costs by 400 million euros by 2025. The company had previously announced job cuts in the mid-four-digit range. 40 percent of the jobs that will be lost are located in Germany.
Analysts are putting pressure on the auto supply division
It has been clear since December that Conti is also spending money on research and development. Investors and analysts have long complained that Conti not only earns little in the automotive supply sector, but also spends a comparatively large amount of money on research. In 2028, the share of research and development expenditure in the division’s sales is expected to fall to nine percent; it is currently around twelve percent.
“By streamlining our research and development network, we are leveraging synergies and reducing the burden on our costs,” said Hirschheydt’s division manager. “We are aware of the cuts for our employees and will do everything we can to find good, individual solutions together with our social partners.” The plans also affect 380 jobs at the software subsidiary Elektrobit with its German headquarters in Braunschweig.