Automotive supply business weakens: Continental cuts around 7,150 jobs worldwide

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In addition to the measures announced in the division’s management, the plans also affect employees in research and development, the German company announced on Wednesday. There are around 5,400 jobs in administrative areas and around 1,750 in the research and development network. Philipp von Hirschheydt, division boss in the Rhine-Main region, is also examining the merger of locations. Conti wants to reduce employment gradually and in as socially responsible a way as possible.

The group has already announced comprehensive cost-cutting efforts in automotive supply. According to information from November, annual costs are expected to decrease by 400 million euros by 2025, with the decrease in management work. The company had previously announced layoffs in the mid-four-digit range. It’s been clear since the investor event in December that Conti is also spending money on research and development. It was previously unclear how many jobs would be affected.

Investors have long complained that Conti not only earns little in the automotive supply business but also spends relatively large amounts of money on research. By 2028, the share of research and development expenses in the division’s sales is expected to fall to nine percent. It’s currently around twelve percent. So far, Conti has promised a value below ten percent as a reference point in the medium term, that is, for the next three to five years.

“By streamlining our research and development network, we benefit from synergies and reduce our costs,” said Hirschheydt’s division manager. “We are aware of the disruptions to our employees and will do our best to find good, individual solutions together with our social partners.” The plans also affect 380 jobs at software subsidiary Elektrobit, which has its German headquarters in Braunschweig.

(SDA)

Source :Blick