BERLIN (Reuters) – German auto parts maker Continental said on Monday it would cut thousands of jobs in its automotive division globally, as part of a plan to save 400 million euros a year from 2025.
German business newspaper Manager Magazin reported on Sunday that planned job cuts in the automotive division could be around 5,500 positions, including more than 1,100 at its 30 sites in Germany.
In the press release released Monday, Continental did not confirm this figure, only specifying that the workforce reductions will be in the four-digit range.
The group added that the planned cuts would focus on simplifying and streamlining its commercial and administrative structures through a series of measures ranging from sales to research and development to production.
The number of business areas within the division will be reduced from six to five, with the Smart Mobility segment dissolved and distributed to other areas.
A full strategy update will be provided at Continental’s investor day on December 4, the statement said.
This news comes as the group is reportedly considering restructuring and potential sales. In September, Continental CEO Nikolai Setzer said he was considering a change in ownership of the company’s ContiTech division.
Continental last week announced a return to profit in the automotive business in the third quarter and forecasts a strong quarter ahead. She still expects the growth in light vehicle sales to slow down next year.
(Reporting Andrey Sychev and Victoria Waldersee; Gaëlle Sheehan, editing by Kate Entringer)
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