Continental expands restructuring, hitting 30,000 jobs

German auto-parts maker Continental said Tuesday that it would expand its vast restructuring programme to affect 30,000 jobs, as the coronavirus pandemic ravages global vehicle production.

Continental aims to save more than 1 billion euros ($1.2 billion) annually from 2023, doubling a previously announced savings target, it said in a statement.

More than 30,000 jobs worldwide—around 13 percent of its workforce—will be "modified, relocated or made redundant," the company said, with about 13,000 of those in Germany.

The Hanover-based company blamed "persistently low global vehicle production as well as the deepening as a result of the coronavirus pandemic."

Continental does not expect vehicle production to return to the pre-crisis levels of 2017 before 2025.

In August, it said plunged 41 percent to 485 million euros in the .

"The entire automotive industry is currently faced with enormous challenges. It has not experienced a larger, more severe crisis in the past 70 years," Continental chief executive Elmar Degenhart said.

The company had originally announced measures in September 2019 that would have affected up to 20,000 jobs worldwide, including some 7,000 in Germany.

But Continental said the numbers don't take into account any jobs created by new ventures in , automated driving or from .

Continental trailed Germany's blue-chip DAX index Tuesday, shedding 2.4 percent versus a rise of 0.1 percent for the DAX as a whole.

© 2020 AFP

Citation: Continental expands restructuring, hitting 30,000 jobs (2020, September 1) retrieved 23 April 2024 from
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.

Explore further

Continental launches job cuts, savings drive


Feedback to editors