Conti ‘Automotive’ unit cutting 3,000 R&D jobs worldwide

Frankfurt, Germany – Continental’s Automotive group, which is currently being carved out as a separate entity, is planning to cut 3,000 R&D jobs globally by end of 2026.

The rationalisation will help the group sector achieve an ‘improved global set-up’ with enhanced competitiveness ahead of it being listed later this year, said Continental's 18 Feb announcement.

Just under 50% of the job cuts will be in Germany with the majority expected to be achieved through “natural fluctuation”, for example retirements and internal hiring.

Once completed, the efficiency measures are slated to reduce the automotive units' 'R&D ratio' to a level of less than 10% by 2027, said the German group.

Targeted measures for the individual business segments, subsidiaries and locations will adapt capacities to changing customer-demand and improve processes, added Continental.

In Germany, the measures relate primarily to the sites in Babenhausen, where 12% of employees will be affected and Frankfurt where 5% of employees will be impacted.

Further efficiency measures, on a smaller scale, are planned in Ingolstadt, Regensburg and Schwalbach, as well as at subsidiaries Elektrobit and Continental Engineering Services.

“These latest measures are necessary and in part due to the dynamic and challenging market environment as the industry is undergoing a major transformation toward future technologies,” Continental added.

But the company will “continue to invest substantially” in R&D for new products and systems, explained head of Automotive Philipp von Hirschheydt.

“At the same time, we are continuously improving our competitive strengths… [and] will ensure our R&D team is one of the most efficient in the world market,” he added.

As of December 2024, the Automotive group sector employs 92,000 people, of which 31,000 are in R&D-related positions.