Continental to cut 13,000 jobs in Germany amid setbacks to car industry

Continental to cut 13,000 jobs in Germany amid setbacks to car industry
Construction at Continental's headquarters in Hanover. Photo: DPA
German auto-parts maker Continental said Tuesday that it would expand its vast restructuring programme to affect 30,000 jobs, as the coronavirus pandemic ravages global vehicle production.

Continental aims to save more than 1 billion annually from 2023, doubling a previously announced savings target, it said in a statement.

More than 30,000 jobs worldwide — around 13 percent of its workforce — will be “modified, relocated or made redundant,” the company said, with about 13,000 of those in Germany.

READ ALSO: Continental to cut thousands of jobs in Germany through massive restructuring

The Hanover-based company blamed “persistently low global vehicle production as well as the deepening economic crisis as a result of the coronavirus pandemic.”

Continental does not expect vehicle production to return to the pre-crisis levels of 2017 before 2025.

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In August, it said net profit plunged 41 percent to 485 million in the second quarter.

“The entire automotive industry is currently faced with enormous challenges. It has not experienced a larger, more severe crisis in the past 70 years,” Continental chief executive Elmar Degenhart said.

The company had originally announced measures in September 2019 that would
have affected up to 20,000 jobs worldwide, including some 7,000 in Germany.

But Continental said the numbers don't take into account any jobs created by new ventures in digital technology, automated driving or from electric cars.

Continental trailed Germany's blue-chip DAX index Tuesday, shedding 2.4 percent versus a rise of 0.1 percent for the DAX as a whole.

READ ALSO: Why has German car production hit a 22-year low?

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