Continental is cutting three thousand employees
Continental announced that by the end of 2026, it will cut 3,000 research and development jobs at its Automotive division, which produces various automotive parts, such as brake systems, and will be spun off into a separate company in the future. Currently, Continental is undergoing a business restructuring, and earlier it was also announced that another 7,000 jobs would be cut.
The goal of the new measures is to reduce research costs at Continental Automotive, and the company also reported that less than half of the job cuts will affect Germany. The reorganization will affect the divisions in Babenhausen and Frankfurt, where the number of jobs will be reduced by 12% and 5%, respectively. Additionally, job cuts will affect Continental employees in Ingolstadt, Regensburg, and Schwalbach. Furthermore, 900 employees (including 660 in Germany) of the subsidiary structures Elekrobit and Continental Engineering Services will also be cut.
"Technological development is crucial for our business. We will continue to invest significant funds in scientific research and the development of new products," emphasized Philipp von Hirschheydt, a member of Continental's Executive Board and head of the Automotive division. "At the same time, we strive to improve our competitive advantages in order to achieve stable success in the market. Therefore, we plan to make our R&D team one of the most efficient in the world and ensure attractive jobs in the long term."
As of December 31, 2024, Continental Automotive employed 92,000 people, of which 31,000 were engaged in research and development. The division accounts for about half of the group's revenue, and its spin-off from Continental is expected to take place by the end of the year.
Currently, other German automotive parts manufacturers are also reducing expenses due to the decline in passenger car sales, and in recent months, Schaeffler, ZF Friedrichshafen, and Bosch have announced job cuts for thousands of employees. Automakers are also taking similar measures, and, for example, Volkswagen will cut 35,000 jobs in Germany by 2030.