Source: AFP
German car supplier Continental said on Wednesday it will cut around 7,150 jobs worldwide by 2025 as the difficult transition to electric vehicles forces companies in the sector to restructure.
The group, which makes tires and supplies parts to carmakers, said in a statement that it would shed 1,750 jobs in research and development.
It would also shed around 5,400 jobs as part of a previously announced cost-cutting program aimed at saving the team 400 million euros ($428 million) by 2025.
Continental, which currently employs about 200,000 people worldwide, announced the plan in November, without giving an exact figure for the number of jobs to be cut.
“We know the impact on our employees and we will do everything we can to find good, tailored solutions (for employees),” said Continental’s head of automotive, Philipp von Hirschheydt.
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![](https://images.yen.com.gh/images/ea1ce8951f599c39.jpg?impolicy=cropped-image&imwidth=256)
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The cuts will allow Continental to “focus our resources even more on future technologies for software-defined vehicles,” von Hirschheydt said.
Germany’s auto suppliers are struggling as the transition to electric mobility accelerates, after decades of relying on fossil fuel vehicles for their profits.
Continental is also the latest German manufacturer to announce job cuts as the country’s export-focused industry faces a global slowdown in growth and high inflation.
Appliance maker Miele said earlier this month it would cut up to 2,700 jobs amid weak demand for its products, while Bosch announced plans in December to cut 1,500 jobs.
Source: AFP