German car parts giant Continental is facing such deep financial troubles that it now plans to cut an additional 3,000 jobs, on top of the 7,150 layoffs already announced.
Continental is one of the largest suppliers to the automotive industry, and the company has been struggling with ongoing financial difficulties and restructuring.
Earlier this month, the company confirmed the closure of several factories, resulting in significant job losses.
According to Reuters, the company had already announced last year that 7,150 positions in its automotive division would be cut.
Now, another 3,000 jobs — mainly in research and development — are on the chopping block, with about half of these reductions expected to take place in Germany.
Some of the layoffs may be achieved through natural attrition, such as retirements, and Continental has entered negotiations with unions to determine how the cuts will be implemented.
Several factors have contributed to Continental’s crisis, including the broader challenges facing the automotive industry. Rising costs, the shift to electric vehicles, and intense competition—particularly from Chinese manufacturers—have put significant pressure on suppliers.
Continental is not alone in making such drastic cuts.
Other major automotive companies have also announced workforce reductions in response to changing market conditions. The gearbox manufacturer is set to cut more than 40 billion kroner over the next few years.
The full impact of Continental’s layoffs on employees and affected communities remains uncertain. However, the severity of the situation is highlighted by Audi’s recent decision to withdraw from Belgium. Despite government efforts to keep the German carmaker in the country, its factory will close by the end of February, leading to over 3,000 job losses.
Continental has yet to release a detailed plan on how it will manage the upcoming layoffs.
