Red pencil in the automotive business
Continental wants to cut 5,500 jobs worldwide
November 12, 2023, 3:14 p.m
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According to a report, supplier Continental is turning the corner on the automotive business. This is said to affect 5,500 jobs worldwide, 1,000 at locations in Germany. The board is reacting to years of failure in the division.
According to a report in “Manager Magazin”, the supplier Continental wants to cut around 5,500 jobs in its automotive business worldwide – more than 1,000 in Germany. Essentially, it is about jobs in administrative areas, the magazine reported, citing company managers. The areas of production and development as well as tire manufacturing are excluded.
“Continental is examining further measures to strengthen the competitiveness of the Automotive division,” the company said in response to a request from Dow Jones Newswires. “This includes possible changes in administrative structures in order to enable faster and more agile decisions in the future and to reduce the burden on the cost side.” It is currently examining which measures are best suited to achieving the goals “and strengthening competitiveness”.
A good 100,000 people work in the automotive sector worldwide and, according to the report, around 25,000 in the affected indirect sector. Continental’s board of directors is reacting to years of failure in the division. The company wanted to inform employees about the planned job cuts on Monday, reported “Manager Magazin”. Top management was informed about the plans on Friday. Continental wants to save 400 million euros per year with the job cuts.
The company told the magazine that it was “examining further measures to strengthen the competitiveness of the automotive division.” This includes possible changes in administrative structures in order to enable faster and more agile decisions in the future and to reduce the burden on costs.
Continental was surprisingly profitable in the problem automotive supply division in the third quarter. However, exchange rate effects are slowing down the DAX group, which is why it lowered its sales outlook. Management now expects annual revenue of 41 to 43 billion euros, as the Hanover-based company announced last week. So far, sales of 41.5 to 44.5 billion were planned.