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Continental is reinforcing its focus on future mobility technologies while implementing strategic measures to optimize its global R&D network. In response to a challenging market environment, the Automotive group sector aims to enhance its competitiveness through targeted efficiency efforts, all while ensuring socially responsible workforce adjustments.
The company plans to reduce its R&D ratio to below 10% by 2027, aligning investments with evolving market demands. A significant part of this strategy involves a global reduction of around 3,000 R&D jobs by the end of 2026, with less than half of these cuts impacting German operations. Continental emphasizes that many of these reductions will occur through natural attrition and internal hiring, minimizing direct layoffs.
Key Highlights:
- Focus on key mobility megatrends, including safe, connected, and autonomous driving technologies.
- Optimization of the global R&D network to boost customer responsiveness and streamline operations.
- Planned reduction of the R&D ratio to below 10% by 2027 for enhanced cost efficiency.
- Around 3,000 global R&D jobs to be reduced, with socially responsible implementation.
- German sites, including Babenhausen and Frankfurt, will see workforce impacts, though less than half of the total reductions will occur in Germany.
- Elektrobit and Continental Engineering Services will also undergo restructuring, affecting 900 positions globally.
- Continued investment in new products and systems to sustain innovation leadership in the market.
Philipp von Hirschheydt, Continental Executive Board member and head of the Automotive group sector, emphasized the company’s balanced approach: “In the coming years, we will continue to invest substantially in research and development for new products and systems. At the same time, we are continuously improving our competitive strength in the interests of our sustainable market success.”
Commitment to Employee Support
Continental is dedicated to implementing these changes as socially responsibly as possible. The company plans to leverage natural attrition and internal mobility to limit job losses. Additionally, its Institute for Technology and Transformation (CITT) offers tailored training and upskilling programs to help affected employees transition into new roles.
Continental is also collaborating with social partners and local companies to assist employees in finding new opportunities, underlining its commitment to supporting its workforce through this transformation.
With around 92,000 employees—31,000 of whom are in R&D—Continental’s Automotive group sector remains focused on future-ready technologies while adapting its operations for long-term market success.
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