Continental: to cut 1,750 R&D jobs

(CercleFinance.com) - Continental announced on Wednesday that it plans to cut some 1,750 positions in its automotive research and development (R&D) activities as part of a drive to reduce costs.


These measures, to be implemented by the end of 2025, are aimed at consolidating the number of research units, currently numbering 82, through better use of resources and the development of synergies.

Out of the 1,750 job cuts planned worldwide, around 380 will concern its mobility software subsidiary Elektrobit, the company says.

Conti points out that these initiatives are part of the 'Lead - Focus - Perform' strategic plan presented at last December's Investor Day.

In particular, this program aims to reduce R&D expenditure to less than 10% of sales in the medium term, compared with around 12% last year.

In November, the German automotive supplier had already announced its intention to reduce its administrative staff by around 5,400 positions in order to cut annual costs by around E400m by 2025.

On the Frankfurt Stock Exchange, Continental's share price was down just 0.1% on Wednesday following these announcements.

According to its latest annual report, the group employs 200,000 people in about 50 countries.


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