Continental is preparing another round of restructuring measures at its ContiTech rubber and plastics division as it seeks to adapt to weaker market conditions and lower its cost base.
The move follows previously announced actions that the company says are “no longer sufficient”.
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In January, the German automotive supplier set out plans to shut four plants and scale back operations at two more sites, affecting around 580 positions at ContiTech.
Despite these steps, ContiTech’s “key markets and regions continue to underperform and its cost structure remains too high compared with competition”, the company said.
Continental executive board member and ContiTech Group Sector head Philip Nelles added: “Cost pressure is increasing due to a changing market environment, slower growth rates in key economies and industries, ongoing uncertainty from trade conflicts and intensifying competition – particularly from China.”
The group is targeting annual cost savings of €150m ($172.73m) from 2028, with most of the reduction expected to come from administrative functions.
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By GlobalDataIts new programme is due to be rolled out across all parts and levels of the ContiTech organisation from 2026 and is to include relocating activities, cutting jobs and revising internal processes.
Continental stated that the precise number of positions to be eliminated in Germany, and the way the changes will be implemented, will be agreed with employee representatives.
Reuters, citing a works council source, reported that up to 1,500 additional jobs could be cut at ContiTech as part of the restructuring.
The company previously confirmed it is preparing to divest ContiTech as part of a broader reorganisation of the group.
According to Continental, most of the anticipated changes will affect ContiTech operations in Hanover, where certain activities are expected to be transferred to locations in countries with lower cost structures.
Nelles said: “Adjusting our cost structure is necessary regardless of the planned sale of ContiTech and its future ownership. A competitive cost level is essential for our long-term viability. We are acting decisively to unlock our medium- and long-term potential, which we firmly believe in.”
