Continental to Cut 3,000 Jobs to Slash Costs at Auto Unit
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Continental AG is cutting around 3,000 research and development jobs at its automotive unit as the German parts maker prepares to spin off the struggling business.
The reductions — equating to about 10% of the R&D workforce — will be made by the end of 2026, with fewer than half of them in Germany, Continental said Feb. 18.
The manufacturer is bracing for weak sales at the auto division, which it plans to spin off by the end of this year despite the car industry downturn. The business makes products including brakes and automated driving systems, and accounts for roughly half of group revenue.
German parts makers are seeking ways to slash costs, as a slump in car sales hits demand for their products. Schaeffler AG, ZF Friedrichshafen AG and Robert Bosch GmbH have all said in recent months that they’re planning to ax thousands of jobs in response to the downturn.
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Continental’s planned cuts will be achieved largely without laying off staff, with measures including not replacing workers who leave and hiring internally, the company said. German sites affected include those in Babenhausen and Frankfurt.
Automakers are also taking drastic steps to deal with the drop in demand. Volkswagen AG reached an agreement with labor leaders late last year to cut 35,000 jobs in Germany by 2030, while Porsche AG plans to trim its workforce by 1,900 employees in Germany by the end of the decade.
