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Continental slashing 10% of global workforce

Continental slashing 10% of global workforce

Business news |
By Christoph Hammerschmidt



Under the name Transformation 2019-2029, the program aims at two goals: It will increase organizational efficiency and productivity, and, in the first place, it will focus the company’s activities on the “decisive growth fields of the future”, as the company put it in the announcement.

The move will affect some 7.000 of its 62.00 jobs in Germany and even more so abroad. Among other, production facilities for hydraulic components for combustion engines as well injectors for diesel engines at its Roding and Limbach-Oberfrohna campuses (both Germany) will be closed. These two measures alone will lead to 1200 job cuts. In its plant in Pisa (Italy), the production stop of hydraulic components for gasoline engines will translate into another 500 job cuts.

In the U.S., the company plans to close down its activities in Newport News (Virginia) where 740 jobs for the production of fuel injectors for gasoline engines will become obsolete. Similarly, the production line of hydraulic brake systems in Henderson, (North Carolina) will be closed (650 job cuts). Further reorganization projects will be announced during the duration of the program.


In order to shift the focus of operational activities and technologies towards digitization and electric mobility, Continental has launched a company-wide qualification program for employees. In this context, the company has established The Continental Institut für Technologie und Transformation (CITT) that offers vocational trainings for workers with lower qualification levels.

At the same time, the corporate management reiterated and confirmed its strategy to focus on future growth fields. These are solutions for assisted and automated driving, connected driving and integrated software-based system solutions.

In the area of assisted and automated driving, Continental expects the addressable market volume to double every five years to reach a total volume of €30 billion in 2025. The market for integrated software-based solutions such as mobility solutions for mobility providers, Continental estimates the market volume today to some $30 billion; by 2030, this volume will grow to about $1.500 billion.

The powertrain business that is planned to be spun off under the name Vitesco, will intensify its focus on electric drives along with related sensors and actuators. In the powertrain business, the company booked an order entry of €11 billon in 2018, of which €2 billion were accounted to electric drives.  

Related articles:

Continental’s powertrain business becomes Vitesco

Continental expands electromobility activities in China

Continental holds its ground against downward pull in automotive industry

Big leap in innovation for China’s carmakers, study says

 

 

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