Continental to cut 3,000 jobs from auto R&D division

(Sharecast News) - Car parts giant Continental has announced 3,000 job cuts from its global automotive research and development team as part of a move to address efficiency gaps and remain competitive, the German firm said on Tuesday. In what it called a "socially responsible reduction" of 10% of its R&D workforce, Continental said it is aiming to cut its R&D ratio to less than a tenth.

The group employs around 92,000 people across its global automotive division, 31,000 of which are in R&D. Less than half of the planned cuts, which are expected to happen by the end of next year, will be in Germany.

"The company is focused on the continued optimisation of its global network of R&D locations and streamlining processes that enable accelerated adaptation to customer needs," it said in a statement.

The cuts were "necessary" and partly due to a challenging market environment as the industry transforms towards future technologies, the company added.

"Offering forward-looking technology is critical to our business. 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 strengths in the interest of our sustainable market success," said Philipp von Hirschheydt, boardmember and head of the automotive division.

"As a result, we will ensure our R&D team is one of the most efficient in the world market and secure attractive jobs for the long term."

Shares in the Frankfurt-listed firm rose 1.5% to €70.92 following the announcement, hitting their highest since March 2024.