The German auto elements manufacturing firm has introduced that it is planning world layoffs in its automotive division as a part of its cost-cutting technique, Reuters studies. The firm goals to save 400 million euros ($428 million) yearly from 2025.
Although the precise quantity of the layoffs has not been disclosed, Continental has indicated that it is going to be within the “mid-four-figure vary.” Already yesterday, information broke that such a transfer might be made on the firm.
Recently, there have been speculations about reorganizations and gross sales inside the firm. In September, CEO Nikolai Setzer hinted that there might be a change of possession within the ContiTech enterprise.
The automotive division’s works council urged Continental to keep away from outright layoffs and discover all accessible choices to retain its workforce, together with part-time retirement of older staff and retraining and redeployment of workers.
Continental’s major actions embrace tire manufacturing, the automotive division answerable for software program growth, security options and autonomous driving applied sciences, and ContiTech, which creates digital applied sciences for the automotive trade and different sectors.
According to Manager Magazin, a German enterprise publication the deliberate downsizing might have an effect on round 5,500 staff of the automotive division. Of these, greater than 1,100 layoffs might happen at Continental’s 30 websites in Germany.
At the tip of 2022, Continental employed round 200,000 individuals in 57 nations and markets, and is additionally current in Hungary.
Continental didn’t affirm the small print to Manager Magazine, however stated the deliberate layoffs are centered on streamlining its enterprise and administrative construction in areas starting from gross sales to analysis and growth to manufacturing. Within the division, the variety of enterprise areas shall be lowered from six to 5, because the Smart Mobility section shall be discontinued and built-in into different areas.
Despite Continental saying a return to profitability in its automotive enterprise within the third quarter and forecasting a powerful efficiency for the following quarter, it additionally warned that progress in demand for passenger automobiles will gradual subsequent 12 months.
Cover picture supply: VCG/VCG through Getty Images