Continental To Cut Thousands Of Jobs; Sees EUR 400 Mln Cost Savings

RTTNews | 607 days ago
Continental To Cut Thousands Of Jobs; Sees EUR 400 Mln Cost Savings

(RTTNews) - German autoparts maker Continental AG Monday announced its plans to cut thousands of jobs in its automotive unit as part of its efforts to strengthen the sector's competitiveness.

Continental said its Automotive sector is simplifying and streamlining business and administrative structures.

With the planned measures in the administrative structures, Continental is aiming to ease the sector's costs by 400 million euros annually. The company expects the full extend of the planned cost savings from various measures to be reached by 2025.

The company is yet to decide the exact number of globally affected jobs, but is expected to be in the mid four-digit range at Automotive. A broad range of measures are being developed across all parts and all levels of the organization.

Under the plan, the sector's organizational structure will be consolidated into five business areas instead of the previous six. The Commercial Vehicle, Automotive Aftermarket, and Actuator business will be reallocated within Automotive. The business area Smart Mobility will be dissolved.

The remaining business areas would be Architecture and Networking, Autonomous Mobility, Safety and Motion, Software and Central Technologies and User Experience.

The Automotive sector is also currently examining additional measures to increase efficiency in the R&D area.

Philipp von Hirschheydt, Member of the Executive Board and Head of Automotive, said, "Our goal is to create a sustainably profitable sector that can invest in its future from its own resources.... These initial measures are important for improving the competitiveness of the Automotive sector. ...To significantly improve efficiency and effectiveness, we are looking at all functions and processes without reservations, from sales to research and from development to production. We are also entering discussions with the social partners to identify suitable measures."

The company plans to provide a comprehensive strategy update for the sector at its Capital Markets Day on December 4, 2023.

In Germany, Continental shares were trading at 63.94 euros, up 0.88 percent.

read more
Continental Stock Up On Strong Q3 Profit; Cuts FY24 Sales View

Continental Stock Up On Strong Q3 Profit; Cuts FY24 Sales View

Shares of Continental AG were gaining around 7 percent on the German trading after the automotive parts maker reported significantly higher profit in its third quarter, mainly as Automotive sector was benefited by the measures taken to improve earnings. Further, the company maintained fiscal 2024 adjusted margin outlook, but trimmed its sales forecast, after adjusting its outlook for ContiTech.
RTTNews | 243 days ago
Swiss Market Ends Sharply Lower

Swiss Market Ends Sharply Lower

The Switzerland market closed weak on Friday, tracking weak global cues after U.S. President Donald Trump's latest tariff moves raised fears of a global trade war.
RTTNews | 1 day ago
European Stocks Close Weak As Trade War Fears Hurt Sentiment

European Stocks Close Weak As Trade War Fears Hurt Sentiment

European stocks closed lower on Friday as trade war fears resurfaced after U.S. President Donald Trump announced a 35% tariff on Canadian goods, effective August 1, 2025, and warned of a blanket tariff of 15-20% on most trading partners.
RTTNews | 1 day ago
Canadian Market Remains Weak On Tariff Concerns

Canadian Market Remains Weak On Tariff Concerns

After a weak start and a subsequent drop to lower levels, the Canadian market continues to languish in negative territory a little past noon on Friday. The mood is cautious amid escalating trade war fears following U.S. President Donald Trump announced a 35% tariff on all non-USMCA Canadian imports, effective August 1.
RTTNews | 1 day ago
Bay Street Likely To Open Lower

Bay Street Likely To Open Lower

Canadian shares look headed for a weak start on Friday due to trade war concerns, although fairly firm crude oil and bullion prices may help limit the market's downside. Data showing an increase in Canadian employment in the month of June and a drop in the unemployment rate may also aid sentiment a bit.
RTTNews | 1 day ago
Pound Falls As U.K. Economy Contracts For Second Straight Month

Pound Falls As U.K. Economy Contracts For Second Straight Month

The British pound weakened against other major currencies in the European session on Friday, as the UK economy shrank for the second consecutive month in May, adding challenges to Chancellor Rachel Reeves in achieving her self-imposed borrowing rules.
RTTNews | 1 day ago