Automotive Supplier Continental Plans Job Cuts in Its ContiTech Division

Continental, the automotive supplier, plans to cut costs in its ContiTech division by 150 million euros a year worldwide and, starting in 2026, intends to eliminate jobs primarily in Hanover. The company announced on Monday that the savings would be achieved “in particular within administrative structures.” To do so, it said, “further steps across all parts and levels of the organization, such as the relocation of activities, job reductions and adjustments to processes, will be implemented from 2026 onward.”

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According to the company, the “full extent” of the savings is expected to be reached in 2028. How many jobs will be cut remains unclear. Continental stated that the exact number of positions affected in Germany “depends on the design of the measures in cooperation with the social partners.” However, the “majority of the expected changes” will affect the ContiTech units in Hanover. The company said it plans “to relocate part of the affected activities to countries with competitive cost structures.”

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Continental justified the plan by pointing to high costs. “Since the relevant markets and regions continue not to recover as expected and costs are too high compared with competitors, the measures taken so far are not sufficient,” the group said.

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In April, the company had announced its intention to spin off ContiTech, which includes its industrial business and plastics products, following a similar move with its Automotive division, which makes electronics, braking systems and displays. “Adjusting the cost structure is necessary regardless of the planned sale of ContiTech,” said Philip Nelles, head of the ContiTech business unit.

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“Continental is presenting drastic cuts almost on a monthly basis,” criticized Francesco Grioli, trade unionist at IGBCE and a member of Continental’s supervisory board. “As employee representatives on the supervisory board, we have repeatedly pointed out the economic risks of the planned ContiTech sale,” added Hasan Allak, chairman of the group works council. “Now it is becoming clear that, in addition, our warnings about further massive job cuts at ContiTech in Germany were all too justified.”

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