The auto supplier Continental announces job cuts at its plastics technology subsidiary ContiTech. In order to improve competitiveness, 150 million euros are to be saved annually from 2028, especially in administration, according to a statement from the company. To achieve this, activities will be relocated from next year, jobs will be cut and processes will be adjusted.
“The exact number of jobs to be eliminated Germany as well as the type of implementation depend on the design of the measures in cooperation with the social partners,” said Continental. A large part of the planned changes will apply to the Hanover-based areas of ContiTech.
Some of the affected activities should be relocated to countries “with competitive cost structures”. The company plans to make the measures “as socially responsible as possible”. Works council circles told Reuters that the savings would result in the loss of up to 1,500 jobs in Germany.
Spin-off planned for next year
Continental wants to go after the Spin-off of its car division Aumovio will also separate from ContiTech next year. Only the traditional tire business, which accounts for around a third of the previous group sales, will remain in the group.
However, the adjustment of the cost structure is independent of this, said Philip Nelles (51), member of the Continental board and head of ContiTech: “A competitive cost level is necessary for our sustainable future, regardless of the ownership.”
The Conti share, after the split of Aumovio in September gained strongly at first, but then lost some of its profits again, was recently trading slightly in the red.
IGBCE: “We are tired of it”
The IGBCE union, on the other hand, said that the break-up of the Continental group would require new victims. “Continental now presents clearcuts almost every month,” said Francesco Grioli (53), a member of the IGBCE executive board and the Conti supervisory board.
“We are tired of hearing new stories about difficult economic conditions,” said Grioli. “What the board regularly ignores is that a large part of the cuts can be attributed solely to the filleting and self-dwarfing of a traditional company.”
ContiTech had already announced plant closures in four federal states in January. According to the company, around 580 jobs were affected in Bad Blankenburg (Thuringia), Stolzenau (Lower Saxony) and Moers (North Rhine-Westphalia) as well as at the dual locations Frohburg and Geithain (Saxony). In addition, the activities at the Hamburg location were to be reduced and a production line in Hanover was to be relocated to another location.