Continental's Job Reductions
【Summary】Automotive company Continental plans to cut thousands of jobs as part of cost-cutting and restructuring efforts. The aim is to create leaner business and administrative structures worldwide, resulting in annual cost savings of €400m by 2025. The company will streamline its organizational structure from six to five business areas, with the dissolution of the Smart Mobility sector. The exact number of affected jobs is yet to be decided but is expected to be in the mid four-digit range.
Continental has announced its plans to cut thousands of workers as part of cost-cutting and restructuring measures. The company aims to achieve annual cost savings of €400m by 2025. The goal is to create leaner business and administrative structures worldwide, as well as faster decision-making processes. As part of the restructuring, Continental's organizational structure will be streamlined from six to five business areas.
To streamline the business structure of Automotive, the business area Smart Mobility will be dissolved. The sector will be consolidated into five business areas instead of the previous six. The new business areas will be Architecture and Networking, Autonomous Mobility, Safety and Motion, Software and Central Technologies, and User Experience. The Commercial Vehicle, Automotive Aftermarket, and Actuator business will be reallocated within Automotive.
In a statement, Continental stated that the exact number of globally affected jobs is not yet decided but is expected to be in the mid four-digit range at Automotive. The company also emphasized its commitment to implementing all measures in a socially responsible manner. The Automotive sector is currently examining additional measures to increase efficiency in the R&D area. A comprehensive strategy update for the sector will be provided at Continental's Capital Markets Day on December 4, 2023.
Philipp von Hirschheydt, Executive Board Member at Continental and Head of Automotive, emphasized the company's goal of creating a sustainably profitable sector that can invest in its own future. He stated that the adjustments to the structure will allow the company to bring technology solutions to areas with synergies, enabling better response to market requirements. Von Hirschheydt also highlighted the importance of simplifying structures and reducing functions for a successful future, and mentioned ongoing discussions with social partners to identify suitable measures.
In 2022, Continental generated sales of €39.4 billion and currently employs around 200,000 people in 57 countries and markets.
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