Overview

• Continental announced plans to reduce 3,000 research and development jobs in its automotive division by the end of 2026, with fewer than half of the cuts occurring in Germany.
• The company will close its Nuremberg facility and reduce operations in other German states, citing a challenging market environment and falling short of financial targets.
• Job reductions will primarily occur through natural attrition, such as retirements, and internal reassignments, with efforts to minimize direct layoffs.
• The cuts come as Continental prepares to spin off its automotive components business, which has faced financial strain due to industry shifts and slowing demand for electric vehicles.
• The broader European auto sector is under pressure from rising costs, weaker EV demand, and competition from Chinese manufacturers, with other companies like Volkswagen and Porsche also announcing layoffs.