Investing.com -- Continental AG (OTC:CTTAY), the German automotive parts manufacturer, has announced plans to reduce its global research and development (R&D) workforce by approximately 3,000 jobs by the end of 2026. The move is part of the company’s strategy to remain competitive in the rapidly evolving automotive industry.
Less than half of the job reductions will occur in Germany, with the rest affecting the company’s R&D operations worldwide. The company plans to implement the job reductions largely through natural attrition, such as retirements, and by focusing on internal hiring.
Philipp von Hirschheydt, member of the Continental Executive Board and head of the Automotive group sector, stated that the company will continue to significantly invest in R&D for new products and systems. He emphasized the company’s commitment to improving its competitive strength for sustainable market success.
The planned job reductions represent around ten percent of the company’s global R&D workforce. The company’s decision comes as part of a broader effort to optimize its global network of R&D locations and streamline processes for faster adaptation to changing market demands.
The company’s additional efficiency measures will primarily affect the sites in Babenhausen and Frankfurt in Germany, impacting around 12 percent and 5 percent of employees respectively. Further measures are planned in Ingolstadt, Regensburg, and Schwalbach. The company’s subsidiaries, Elektrobit and Continental Engineering Services, will also be impacted, with 480 and 420 jobs affected worldwide respectively. Of these, around 330 jobs at each subsidiary are in Germany.
As part of its global location strategy, Continental Engineering Services plans to exit its location in Nuremberg. As of December 31, 2024, Continental’s Automotive group sector employed around 92,000 people, with approximately 31,000 of them working in research and development.
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