German auto parts firm Continental to slash over 7,000 jobs

HANOVER: World’s third-largest automotive supplier “Continental” is the latest German manufacturer to announce job cuts as the economy contends with weak growth.

German auto supplier Continental announced plans on Wednesday to cut 7,150 jobs worldwide by 2025.

The automotive sector has been forced to retool as consumer demand shifts to electric vehicles.

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“Continental”, which produces tires and other car parts, said 1,750 jobs would be slashed from research and development, while the other 5,400 job cuts were previously announced as part of a cost-cutting programme.

The company’s automotive chief, Philipp von Hirschheydt, said the move would allow the company to “focus our resources even more on future technologies for software-defined vehicles.”

“We are aware of the impact on our employees and will do everything we can to find good, tailored solutions [for employees],” he added.

‘Dramatically bad’ situation

“Continental” is the latest German manufacturer to announce job cuts as the country’s export-focused industry grapples with a global slowdown in growth and high inflation.

Giants such as “Bosch” and “Miele” have also axed thousands of jobs in recent months.

It comes as the German government prepares to slash its economic growth forecast to just 0.2 per cent in a report scheduled to be published next week.

“We can’t go on like this,” German Vice Chancellor and Economy Minister Robert Habeck said on Wednesday, adding that the economic situation is “dramatically bad.”

“Overall, we need to invest more again in this country and get economic growth going,” he said.