As of: February 14, 2024, 3:44 p.m
By: Lisa Mayerhofer
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Continental is pursuing rigid job cuts as part of its austerity program.
(Archive image) © Melissa Erichsen/dpa/Archive
Continental is pursuing rigid job cuts as part of its austerity program.
Now over 7,000 positions in administration as well as research and development are affected.
Frankfurt – The job cuts at the automotive supplier Continental are not over yet.
As part of the rigid austerity program, thousands of jobs will be cut: In addition to administrative employees, this also affects employees in research and development, as the company announced on Wednesday.
7,150 employees affected – consolidation of locations in the Rhine-Main area examined
“By streamlining our research and development network, we are leveraging synergies and reducing the burden on our costs,” explained division boss Philipp von Hirschheydt.
“This will improve our competitiveness sustainably.” Spending on research and development is to be limited from twelve percent of sales to nine percent by 2028.
Since sales growth is assumed, the absolute expenses for this will still increase.
Continental also estimated the staff cuts announced in the fall, which primarily affected administration, at 5,400 jobs.
In research and development, 1,750 jobs worldwide are now affected as part of an efficiency program.
Whether a total of 7,150 of the 203,000 employees leave the company depends on alternative employment opportunities at Conti.
“The measures will be implemented as socially acceptable as possible,” it continued.
40 percent of the jobs that will be lost are located in Germany.
By the end of next year, some of the 82 development locations will be streamlined and units will be pooled and utilized better.
The software subsidiary Elektrobit will lose 380 jobs, although the company wants to focus more on vehicle software.
Conti is also examining a consolidation of the 17 locations in the Rhine-Main area.
German auto suppliers are cutting jobs
Thousands of jobs are also being cut or are being eliminated at the other two major German auto suppliers, Bosch and ZF Friedrichshafen.
The reasons are the slowdown in the automotive industry and high cost pressure when switching to electromobility.
At Continental, the automotive supply business has been under pressure for a long time and is lagging behind the competition in terms of profitability.