Continental plans to cut 5500 jobs in the Automotive division
According to a media report, Continental plans to cut several thousand jobs worldwide in its weakening automotive supplier division. In the automotive division, which also bundles business with displays and driver assistance systems, around 5,500 jobs are to be cut worldwide, more than 1,000 of them at around 30 German locations, as reported by "Manager Magazin" on Sunday, citing people familiar with the matter. That would be just under three percent of the more than 200,000 Conti employees at the end of September. This should save several hundred million euros. The job cuts will primarily affect administration, with production and development apparently being excluded for the time being, it was said.
A Continental spokesperson said on request in the evening that "rumors" would not be commented on. The company is examining "further measures to strengthen the competitiveness of the Automotive sector". This includes possible changes in administrative structures to enable faster and more agile decisions in the future and to relieve the cost side. Corresponding measures are being examined. He could not say whether a decision had already been made.
According to Manager Magazin, the plans for the DAX-listed company will be presented to employees in a webcast this Monday. With this step, Philipp von Hirschheydt, who has been head of the Automotive division since May, wants to save 400 million euros annually from 2025, the magazine writes. Around 200 million euros are to be achieved as early as 2024. This should put Conti's largest division, with its 100,000 employees and most recent annual turnover of 18.3 billion euros, back on a profitable course.
Source: www.dpa.com
