According to a report, Continental wants to make the ailing auto supply division profitable again by streamlining its administration.
In the automotive division, in which the business with displays and driving assistance systems are also bundled, around 5,500 jobs are to be cut worldwide, over 1,000 of them at around 30 German locations, as the “Manager Magazin” said on Sunday, citing the matter familiar people reported. That would be just under three percent of the over 200,000 Conti employees. The move is expected to save several hundred million euros. When asked, a Continental spokesman said they would not comment on rumors. However, the company is examining “further measures to strengthen the competitiveness of the Automotive division”.
According to the spokesman, this includes possible changes to administrative structures in order to enable faster and more agile decisions in the future and to reduce the burden on costs. Appropriate measures would be examined. He couldn’t say whether there had already been a decision.
According to “Manager Magazin”, there will be meetings because administration, production and development in particular are apparently excluded for the time being. The plans are to be presented to employees in a webcast this Monday.
With this step, the automotive division boss Philipp von Hirschheydt, who has been in office since May, wants to save 400 million euros in costs annually from 2025, the magazine continues. Around 200 million euros should be achieved as early as 2024.
The largest Conti division, with its 100,000 employees and annual sales of 18.3 billion euros, should get back on a profitable course.
/mis
HAMBURG (dpa-AFX)
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