Continental plans to cut 5500 jobs worldwide
According to a report, supplier Continental is cutting jobs in the automotive business. Worldwide, 5500 jobs are to be affected, 1000 at locations in Germany. This is the Executive Board's response to years of failure in the division.
According to a report in "Manager Magazin", the supplier Continental is planning to cut around 5500 jobs in its automotive business worldwide - more than 1000 in Germany. The magazine reported, citing company managers, that the cuts will mainly affect jobs in administrative areas. The areas of production and development as well as tire manufacturing are excluded.
"Continental is examining further measures to strengthen the competitiveness of the Automotive sector," the company said in response to an inquiry from Dow Jones Newswires. "This includes possible changes in administrative structures to enable faster and more agile decisions in the future and to relieve the cost side." The company is currently examining which measures are best suited to achieve the goals "and strengthen competitiveness".
A good 100,000 people work in the automotive division worldwide and around 25,000 in the affected indirect area, according to the report. Continental's Executive Board is thus reacting to years of failure in the division. The company intends to inform employees about the planned job cuts on Monday, reported "Manager Magazin". Top management had already been informed of the plans on Friday. Continental wants to save 400 million euros per year with the job cuts.
The company told the magazine that it was 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.
Continental had performed surprisingly profitably in the problematic automotive supply sector in the third quarter. However, exchange rate effects are slowing down the DAX-listed company, which is why it lowered its sales outlook. The management now expects annual sales of 41 to 43 billion euros, as the Hanover-based company announced last week. Previously, sales of 41.5 to 44.5 billion were planned.
Source: www.ntv.de
