Auto supplier Continental to cut jobs in its Contitech division - Continental slashes jobs in Contitech division amid cost-cutting push
Continental has announced plans to cut jobs in its Contitech division as part of a cost-saving drive. The move follows warnings from employee representatives about significant reductions, particularly in Germany. The company aims to achieve financial targets by 2028 through restructuring and relocation of some operations to countries with more competitive cost structures, such as the USA.
The job cuts stem from high expenses and slower-than-expected cost recovery. A large portion of the reductions will affect Contitech’s operations in Hanover, where the division is heavily based. Philip Nelles, head of the Contitech business sector, stated that adjusting the cost structure was unavoidable, even without the planned sale of the division.
Negotiations with labour representatives will determine the exact number of job losses. Hasan Allak, chair of the group works council, has already raised concerns about the economic risks tied to the Contitech sale. Meanwhile, Francesco Grioli, a union representative, criticised Continental for its repeated rounds of layoffs.
To further reduce costs, Continental plans to relocate some Contitech activities to countries with more competitive cost structures. The specific destinations have not yet been disclosed. The company first announced its intention to spin off the Contitech division in April, setting the stage for these latest measures.
The restructuring will see job cuts and operational shifts over the coming years. Continental’s focus remains on lowering expenses to meet its 2028 financial goals. The final scale of reductions in Germany will depend on ongoing talks with unions and labour groups.
