Auto supplier Continental to cut jobs in its Contitech division - Continental slashes jobs at Contitech in sweeping cost-cutting drive
Continental has announced plans to cut jobs in its Contitech division as part of a broader cost-saving strategy. The move follows the company’s decision in April to spin off the unit after separating its Automotive division. Management has pointed to high expenses and past inefficiencies as key reasons for the reductions.
The job cuts will primarily affect Contitech’s operations in Hanover, though the exact number of redundancies in Germany remains under discussion with labour representatives. Continental aims to complete these measures by 2028, with some activities set to be relocated to countries offering lower operational costs.
Philip Nelles, head of the Contitech business sector, stressed that adjusting the cost structure was essential, regardless of the planned sale. His comments came as Hasan Allak, chair of the group works council, raised concerns about the scale of the cuts and their impact on German workers.
Union representative Francesco Grioli criticised the company for repeated layoffs and warned of economic risks tied to the Contitech sale. He argued that frequent restructuring could undermine stability within the division.
The reductions form part of Continental’s long-term plan to improve efficiency, with full implementation expected by 2028. While some roles may shift to the USA, the final number of job losses in Germany will depend on ongoing negotiations with employee representatives. The company has not yet specified which countries will host the relocated operations.
