Inicio Financial German tire firm Continental to slash 7,150 jobs

German tire firm Continental to slash 7,150 jobs

German tire firm Continental to slash 7,150 jobs

German auto supplier Continental announced plans on Wednesday to cut 7,150 jobs worldwide by 2025.

The automotive sector has been forced to retool as consumer demand shifts to electric vehicles.

Continental, which produces tires and other car parts, said 1,750 jobs would be slashed from research and development, while the other 5,400 job cuts were previously announced as part of a cost-cutting program.

The company’s automotive chief, Philipp von Hirschheydt, said the move would allow the company to «focus our resources even more on future technologies for software-defined vehicles.»

«We are aware of the impact on our employees and will do everything we can to find good, tailored solutions (for employees),» he added.

‘Dramatically bad’ situation

Continental is the latest German manufacturer to announce job cuts as the country’s export-focused industry grapples with a global slowdown in growth and high inflation.

Giants such as Bosch and Miele have also axed thousands of jobs in recent months.

Is Germany’s economic model doomed?

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It comes as the German government prepares to slash its economic growth forecast to just 0.2% in a report scheduled to be published next week.

«We can’t go on like this,» German  Vice Chancellor and Economy Minister Robert Habeck said on Wednesday, adding that the economic situation is «dramatically bad.»

«Overall, we need to invest more again in this country and get economic growth going,» he said.

zc/wd (dpa, AFP)

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