Continental plans further restructuring at ContiTech with potential job cuts

Core Viewpoint - Continental is implementing further restructuring measures at its ContiTech division to adapt to challenging market conditions and reduce costs, following previous actions deemed insufficient [1][2]. Group 1: Restructuring Measures - The company plans to shut down four plants and reduce operations at two additional sites, impacting approximately 580 jobs at ContiTech [1]. - A new program will be rolled out across all levels of the ContiTech organization starting in 2026, which will involve job cuts, relocating activities, and revising internal processes [3]. - Up to 1,500 additional jobs may be cut as part of the restructuring efforts [3]. Group 2: Market Conditions and Cost Structure - ContiTech's key markets are underperforming, and its cost structure is higher than that of competitors [2]. - The company is facing increasing cost pressures due to a changing market environment, slower growth rates in key economies, trade conflicts, and intensified competition, particularly from China [2]. Group 3: Financial Targets - Continental aims to achieve annual cost savings of €150 million (approximately $172.73 million) by 2028, primarily from administrative functions [2]. Group 4: Future Plans and Divestment - The company is preparing to divest ContiTech as part of a broader reorganization, with significant changes expected to impact operations in Hanover, where activities may be transferred to lower-cost countries [4][5]. - Adjusting the cost structure is deemed necessary for the long-term viability of the division, regardless of its future ownership [5].