Continental to cut thousands of jobs in its automotive division
The job cuts are part of a plan to save €400m a year from 2025
13 November 2023 - 16:44
byAndrey Sychev, Victoria Waldersee and Christina Amann
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
German car parts manufacturer Continental said on Monday it would cut thousands of jobs in its automotive division worldwide as part of a plan to save €400m a year from 2025. Picture: SUPPLIED
Berlin — German car parts manufacturer Continental said on Monday it would cut thousands of jobs in its automotive division worldwide as part of a plan to save €400m a year from 2025.
The exact number of job cuts was not immediately clear, but it will amount to the “mid-four-digit range”, the company said.
The news comes amid ongoing reports that Continental plans a restructuring and potential sell-offs, with CEO Nikolai Setzer saying in September he was considering a change in ownership of the company’s ContiTech division.
The works council of the automotive division urged the company in an internal statement seen by Reuters to rule out outright dismissals and use all possible measures to keep its workforce on, from part-time retirement for older workers to retraining and reallocating staff.
The group’s main businesses are making tyres, the auto division, which produces software, safety features and autonomous driving technology, and a third division making digital technologies for autos and other sectors called ContiTech.
German business publication Manager Magazin reported the planned cuts in the automotive division on Sunday, saying they could number about 5,500, more than 1,100 of which would be at the company’s 30 locations in Germany.
The group employed about 200,000 people in 57 countries and markets as of the end of 2022.
Continental’s statement on Monday did not confirm the figure reported by Manager Magazin but said planned cuts will focus on simplifying and streamlining its business and administrative structure via a range of measures across everything from sales to research & development to production.
The number of business areas within the division will be reduced from six to five, with the Smart Mobility segment dissolved and allocated into other areas.
Continental will provide a full strategy update at its capital markets day on December 4, the statement said.
Last week the company reported that the automotive business returned to profit in the third quarter and predicted a strong quarter ahead. However, it also said demand for passenger cars would grow more slowly next year.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Continental to cut thousands of jobs in its automotive division
The job cuts are part of a plan to save €400m a year from 2025
Berlin — German car parts manufacturer Continental said on Monday it would cut thousands of jobs in its automotive division worldwide as part of a plan to save €400m a year from 2025.
The exact number of job cuts was not immediately clear, but it will amount to the “mid-four-digit range”, the company said.
The news comes amid ongoing reports that Continental plans a restructuring and potential sell-offs, with CEO Nikolai Setzer saying in September he was considering a change in ownership of the company’s ContiTech division.
The works council of the automotive division urged the company in an internal statement seen by Reuters to rule out outright dismissals and use all possible measures to keep its workforce on, from part-time retirement for older workers to retraining and reallocating staff.
The group’s main businesses are making tyres, the auto division, which produces software, safety features and autonomous driving technology, and a third division making digital technologies for autos and other sectors called ContiTech.
German business publication Manager Magazin reported the planned cuts in the automotive division on Sunday, saying they could number about 5,500, more than 1,100 of which would be at the company’s 30 locations in Germany.
The group employed about 200,000 people in 57 countries and markets as of the end of 2022.
Continental’s statement on Monday did not confirm the figure reported by Manager Magazin but said planned cuts will focus on simplifying and streamlining its business and administrative structure via a range of measures across everything from sales to research & development to production.
The number of business areas within the division will be reduced from six to five, with the Smart Mobility segment dissolved and allocated into other areas.
Continental will provide a full strategy update at its capital markets day on December 4, the statement said.
Last week the company reported that the automotive business returned to profit in the third quarter and predicted a strong quarter ahead. However, it also said demand for passenger cars would grow more slowly next year.
Reuters
Dandelions form part of future Continental tyre material mix
Tyres imported from China hit with hefty duties
Tyre giants Michelin and Continental caught in restraint of trade saga
Tyremakers say tariffs to stop dumping in SA are key to saving industry
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
UAW workers at GM’s Flint plant narrowly vote against labour deal
British Steel plan to shut blast furnaces puts up to 2,000 jobs on the line
Aston Martin trims production outlook after surprise quarterly loss
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.