February 19, 2025 – According to a report by Reuters, the German Continental AG announced on Tuesday local time that its automotive division plans to cut 3,000 research and development jobs by the end of 2026. This layoff measure is being implemented in addition to the previously announced reduction of 7,000 jobs, as part of a reorganization plan that has been in the works for over a year.
Furthermore, Continental stated that it intends to reduce its research and development expenditure to less than 10% by 2027. Less than half of the layoffs will occur in Germany, with the factories in Babenhausen and Frankfurt being the most affected, anticipating a reduction of 12% and 5% of their employees, respectively. The factories in Ingolstadt, Regensburg, and Schwäbisch Hall will also be impacted.
The company added that its subsidiaries, Elekrobit and Continental Engineering Services, will also undergo layoffs, with an expected reduction of 900 jobs. Currently, the European automotive industry is facing weak demand, rising production costs, and fierce competition from China, prompting many companies to announce layoffs and factory closures.
It is understood that Continental’s automotive division employs approximately 92,000 people, of which about 31,000 are engaged in research and development. Due to global demand fluctuations and significant pressure to transition to electrification and intelligence, several German automotive companies, including Volkswagen, Bosch, and ZF, have announced layoffs or business structure adjustments.
