Continental to cut over 7,000 jobs worldwide in auto supply division

HANOVER: German auto parts and tyre manufacturer Continental is to cut some 7,150 jobs worldwide due to its cost-cutting efforts in the weakening automotive supply business.

This corresponds to more than 3% of the total workforce.

In addition to the measures already announced in the division's administration, employees in research and development are also affected by the plans, the DAX-listed company said on Wednesday.

Around 5,400 jobs are to be cut in the administrative areas and a further 1,750 in the research and development network.

In the Rhine-Main region, division head Philipp von Hirschheydt is also looking into merging locations.

Continental said it hopes to cut jobs gradually and as socially responsible as possible.

The group had already announced extensive cost-cutting efforts in the automotive supply sector.

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According to information from November, the job cuts in administration are intended to reduce annual costs by €400 million (RM2bil) by 2025.

It has been clear since an investor event in December that the company was also planning to cut back on spending on research and development. It was previously unclear how many jobs would be affected.

Investors have long criticised that Continental not only earns little in its automotive supplier division but also spends a comparatively large amount of money on research.

"By streamlining our research and development network, we are realising synergies and reducing our costs," said divisional head von Hirschheydt.

"We are aware what the cuts mean for our employees and will do everything we can to find good and individual solutions together with our social partners," von Hirschheydt added.

The plans also affect 380 jobs at the software subsidiary Elektrobit, which has its German headquarters in Braunschweig.
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