Total cuts in the company reaches 10,000 during the crisis in the auto market in Germany and Europe
Continental, a German car parts supplier, should cut another 3,000 jobs in the area of automotive division research and development by the end of 2026. More than half of layoffs reaches factories in.
The announcement was made on February 18 and takes place in the midst of a crisis in the German automobile sector and also from Europe, with companies such as Volkswagen promoting cuts and units closure.
Continental reported that the Nuremberg unit will be closed. Other factories in the states of Hesse and Bavaria should also be hit.
A year ago, the multinational announced the first round of cuts as part of the efforts to reduce costs. At the time, the company announced that 7,150 jobs would be eliminated in the automobile division, with 5,400 of these cuts reaching the administration and 1,750 the development sector.
Continental mentioned the crisis in Germany’s automotive industry as a justification for the announcement. He reported that between 80% and 90% of the previously announced reductions were implemented. With the last announcement, the total of job cuts reaches more than 10,000.
Another 480 job cuts will be made at the continental software subsidiary, Elektrobit, 330 of them in Germany.
In all, Continental maintains about 31 thousand posts in research and development worldwide. According to a company spokesman, the goal is to reduce expenses in these sectors to less than 10% of revenues by 2027.
Continental explained that it aims to carry out the reductions as socially responsible as possible, so that it will not replace employees who retire or resign. The details will be negotiated with the workers and union representatives.
A continental representative said the additional job cuts are needed because the market situation has left the company short of the financial goals.
“Technology offers focused on the future are of crucial importance to our company“Said Continental executive for automotive division, Philipp von Hirschheydt in a press release.
He added that Continental will continue “investing substantially in research and development in the coming years“Even if you try to improve your“competitive force in the interest of our sustainable market success“.
Employee representatives criticized the dismissal announcement. “We are deeply concerned that deep cuts in automotive research and development turn into a comprehensive restructuring“Commented Michael Iglhaut, head of the Continental General Labor Council.
Iglhaut said job cuts and cost reduction at any price is not a sustainable strategy for the future. Added that “deliberate bleeding from German unitsIt weakens the automotive division.
In December, Continental announced its intention to dismember its division of automotive suppliers, which has been fighting for years, and launching it in the stock market as a separate company-a plan that will still need to be approved by shareholders at the company’s next general meeting.
If investors approve of change, an initial public offering in the division stock market under a new name may occur by the end of the year.
Deutsche Welle is Germany’s international broadcaster and produces independent journalism in 30 languages. Follow us in | | | | | |
