Stay competitive
German automotive empire Continental is unveiling radical measures to ensure its competitiveness in an ever-changing automotive market. The multinational company, recognized for its expertise in the tire industry, officially confirmed last Wednesday, intends to liquidate 7150 positionsto optimize their activities and stay at the forefront of the transition to electric vehicles.
This decision would mean the elimination of approximately 3.6% of the workforce, which at last count (September 2023) was approximately 203,593 employees in 57 countries. In addition to reducing the workforce, Continental plans to consolidate certain businesses, mainly in Germany, but not only.
The sectors most affected by the job cuts will be automotive units specializing in the supply of components such as brakes, entertainment services and the development of autonomous driving solutions. ContiTech’s research and development division will also be affected. Of the 7,150 lost jobs 1750 will be in the ContiTech divisionwhile the other 5,400 relate mainly to the administrative functions of the automotive division.
To save 400 million euros per year
The ultimate goal of the company is achieve savings of around 400 million euros per year from 2025. In addition to the job cuts, Continental plans to reduce its investment in research to 9% of its turnover by 2028, compared to 12% now.
Despite the increase in turnover, the company is preparing to face significant difficulties in 2024. Turmoil linked to the Red Sea crisis has led to supply chain disruptions and electric car sales in Germany are falling, with a projected 25% drop from pre-pandemic levels.
Faced with these challenges, Continental strives to control its costs in order to remain competitive.
In addition to layoffs and reduced investment in research, the company is focusing its efforts on optimizing its operations in an uncertain economic context for the automotive sector and the industry as a whole.
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Source: Auto Plus
Robert is an experienced journalist who has been covering the automobile industry for over a decade. He has a deep understanding of the latest technologies and trends in the industry and is known for his thorough and in-depth reporting.