Continental plans further restructuring at ContiTech with potential job cuts

Continental is preparing different circular of restructuring measures astatine its ContiTech rubber and plastics part arsenic it seeks to accommodate to weaker marketplace conditions and little its outgo base.

The determination follows antecedently announced actions that the institution says are “no longer sufficient”.

In January, the German automotive supplier acceptable retired plans to unopen 4 plants and standard backmost operations astatine 2 much sites, affecting astir 580 positions astatine ContiTech.

Despite these steps, ContiTech’s “key markets and regions proceed to underperform and its outgo operation remains excessively precocious compared with competition”, the institution said.

Continental enforcement committee subordinate and ContiTech Group Sector caput Philip Nelles added: “Cost unit is expanding owed to a changing marketplace environment, slower maturation rates successful cardinal economies and industries, ongoing uncertainty from commercialized conflicts and intensifying contention – peculiarly from China.”

The radical is targeting yearly outgo savings of €150m ($172.73m) from 2028, with astir of the simplification expected to travel from administrative functions.

Its caller programme is owed to beryllium rolled retired crossed each parts and levels of the ContiTech organisation from 2026 and is to see relocating activities, cutting jobs and revising interior processes.

Continental stated that the precise fig of positions to beryllium eliminated successful Germany, and the mode the changes volition beryllium implemented, volition beryllium agreed with worker representatives.

Reuters, citing a works assembly source, reported that up to 1,500 further jobs could beryllium chopped astatine ContiTech arsenic portion of the restructuring.

The institution antecedently confirmed it is preparing to divest ContiTech arsenic portion of a broader reorganisation of the group.

According to Continental, astir of the anticipated changes volition impact ContiTech operations successful Hanover, wherever definite activities are expected to beryllium transferred to locations successful countries with little outgo structures.

Nelles said: “Adjusting our outgo operation is indispensable careless of the planned merchantability of ContiTech and its aboriginal ownership. A competitory outgo level is indispensable for our semipermanent viability. We are acting decisively to unlock our medium- and semipermanent potential, which we firmly judge in.”

"Continental plans further restructuring astatine ContiTech with imaginable occupation cuts" was primitively created and published by Just Auto, a GlobalData owned brand.

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