In a bid to bolster its struggling automotive supplier division for an imminent IPO, Continental has unveiled plans to cut a further 3,000 jobs worldwide by the end of 2026. The new measures focus on research and development, with significant reductions slated for key locations in Germany 1,450 positions in total as well as in other regions. Sites in Hesse, Bavaria, and notably the complete closure of the Nuremberg engineering center are among those affected.
Following Previous Redundancies
This latest round of cuts comes on the heels of last year’s announcement to reduce 7,150 jobs in the division 5,400 in administration and 1,750 in development with 80 to 90 percent of those cuts already implemented. The additional 3,000 job losses will push the total number of redundancies in the automotive division to over 10,000. According to a company report, these drastic measures are a response to worsening market conditions in the automotive industry, which have made previous cost-saving efforts insufficient.
Impact on Key Sites
At Continental’s largest automotive site in Frankfurt, about 220 development jobs are expected to be eliminated from an existing workforce of 4,000, following hundreds of cuts made there last year. Other locations, including Babenhausen in Hesse and Ingolstadt and Regensburg in Bavaria, will also see significant reductions. Meanwhile, in locations like Wetzlar and Schwalbach, where previous closures were announced, fewer employees will be relocated, resulting in additional job losses. The software subsidiary Elektrobit, with bases in Erlangen, Berlin, Stuttgart, and Braunschweig, is also set to shed 480 jobs, including 330 in Germany.
Reactions from Employees and Local Officials
The move has elicited fierce criticism from employee representatives. General Works Council Chairman Michael Iglhaut warned that “job cuts and cost reductions at any price” are not a sustainable strategy, arguing that the deliberate “bleeding of the German locations” could ultimately weaken the division, which Continental intends to spin off as an independent company this year. Criticism has also come from the Bavarian state parliament, where economic experts have called the decision “ruthless and brutal,” urging company executives to cut their own salaries instead of dismissing workers.
Preparing for an IPO
Continental’s decision to further slash jobs is part of a strategic restructuring intended to reposition its ailing automotive supplier division ahead of a planned IPO under a new name, expected by the end of the year. The division has long been regarded as the group’s “problem child,” having posted losses repeatedly in recent years. Company spokespersons emphasize that, despite the deep cuts, the focus remains on investing in forward-looking technology and maintaining competitiveness in an increasingly challenging market.
