Continental: to cut 20,000 jobs as volumes slump

(CercleFinance.com) - Continental is launching a long-term restructuring program to cut its workforce by 20,000 jobs, as weaker auto markets continue to squeeze business volumes.


According to a preliminary analysis, up to 20,000 of its global workforce of over 244,000 are expected to be affected under the "transformation" program over the next 10 years.

Faced with a decline in global automotive production and the increase in customer demand for digital apps, Conti plans to reduce its gross costs by about 500 million euros annually from 2023.

Beyond job cuts, the German auto parts maker plans to close its factory in Newport News, Virginia, USA, where around 740 people make hydraulic components for gasoline engines.

Conti also said it has approved the closure of another US plant in North Carolina, where around 650 employees currently produce hydraulic brake systems.

The company expects the program to cost around 1.1 billion euros over its 10-year term, with costs mostly incurred between 2019 and 2022.

In a statement, Continental nevertheless promised to create "a large number of jobs" in its software-based business and in key growth areas in the coming years.

The Continental share was up 0.9% in Frankfurt after these announcements were made.

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