German automotive parts manufacturing company Continental’s Automotive subsidiary is planning to cut an additional 3,000 jobs in its research and development (R&D) segment by the end of 2026.
The company aims to optimise its global R&D network and improve efficiency through this decision, which follows a previous announced reduction of 7,000 positions.
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In a press release, the company said it is focusing on technology development for key mobility trends while streamlining operations to better align with customer demands.
The additional job cuts are part of a broader effort to reduce Continental’s R&D ratio to below 10% by 2027, to ensure competitiveness.
Continental intends to implement these changes largely through “natural fluctuation”, including retirements, and by prioritising internal hiring.
Less than half of the planned reductions are planned to occur in Germany, primarily affecting Babenhausen and Frankfurt sites, where around 12% and 5% of employees are expected to be impacted.
Smaller-scale measures are also planned for Ingolstadt, Regensburg, and Schwalbach sites.
The company’s other subsidiaries, Elektrobit and Continental Engineering Services, are also expected to see job reductions.
Elektrobit will be impacted by 480 job cuts worldwide, including 330 in Germany, while Continental Engineering Services will see 420 positions affected globally, with 330 in Germany.
As part of the restructuring, Continental Engineering Services plans to exit its Nuremberg location.
As of 31 December 2024, Continental’s automotive division employs approximately 92,000 people, with around 31,000 working in research and development.
The company has stated that it aims to carry out the job reductions in a socially responsible manner.
Continental executive board member and Automotive group sector head Philipp von Hirschheydt said: “Offering forward-looking technology is critical to our business.
“We will continue to invest substantially in research and development for new products and systems.
“At the same time, we are continuously improving our competitive strengths in the interest of our sustainable market success. As a result, we will ensure our R&D team is one of the most efficient in the world market and secure attractive jobs for the long term.”
Continental intends to manage attrition without replacing certain roles and is working with local companies to assist affected employees in finding new jobs.
Additionally, the company’s Institute for Technology and Transformation (CITT) will provide retraining and targeted qualification programmes to support impacted workers.
