Continental Announces Additional Job Cuts Amidst Declining Automotive Sector
German automotive supplier Continental has announced plans to eliminate 3,000 more positions worldwide by the end of 2026, citing persistent weakness in the automotive industry. Nearly half of the affected jobs will be located in Germany, where one site in Nuremberg, Bavaria, will be closed, according to a statement from the company.
This latest round of job cuts comes on the heels of 7,000 cuts announced a year ago in Continental’s automotive division. These new measures add to the previously announced plan to eliminate 7,150 jobs last year – representing 3% of the group’s global workforce – as well as the closure of five German plants last month, impacting 580 positions.
The cuts will primarily target research and development roles, which Continental aims to reduce by 10% to remain "competitive," as stated in the company’s press release. The reductions are expected to be implemented "to a significant extent" through early retirements and hiring freezes, according to the group.
Challenges Facing Continental and the Automotive Sector
The decision to cut jobs stems from a "challenging and dynamic market environment as the industry undergoes a major transformation towards future technologies," Continental explained. Equipment manufacturers have been impacted for months by declining orders from European automakers, who themselves are facing falling global demand for vehicles, soaring energy prices, and increased competition from China.
Like automakers, automotive suppliers have heavily invested in vehicle electrification to align with climate transition goals. However, sales of electric cars, which are more expensive to purchase, have been sluggish in major European markets for the past two years.
Industry-Wide Impact
Other German auto parts manufacturers have also announced job cuts in recent months, including global leader Bosch, Schaeffler, and ZF. This crisis has also affected France, prompting restructuring plans at Michelin and Valéo. European automotive giant Volkswagen announced 35,000 job cuts and the closure of two plants in late December.
Continental’s Current Workforce
Continental employs 200,000 people worldwide, with nearly half working in the automotive sector and 31,000 in research and development. The company’s decision to eliminate additional jobs reflects the ongoing challenges faced by the automotive industry and the need to adapt to emerging technologies and market conditions.
