Continental has laid out plans to lay off thousands of employees in its automotive division. The job cuts will take place worldwide to reduce costs by about $428 million. The German manufacturer is yet to confirm the exact number of jobs that will be lost but they did hint that it will be in the mid-four-figure category.
Most of the layoffs will take place in its auto division a year from 2025. The division produces makes safety feature technology, software, autonomous driving, and digital technologies for vehicles. This will be part of the company’s reported restructuring and sale of its ContiTech division.
According to the German publication Manager Magazin, the number could be anywhere around 5,500 with about 1,100 employees losing their jobs in 30 locations within the country. Continental Tire has more than 200,000 people working in its sites in 57 countries.
The tire manufacturer is yet to confirm the numbers reported by the publication. However, it has indicated that this will be done to help simplify and streamline its business and administrative structure across all divisions, including sales, production, and R&D. The Smart Mobility division will be dissolved and merged with other areas.
It’s good to know that the company has reported profit in its third quarter in its automotive business. It predicts that business will keep growing as demand for Continental tires grows next year.