Continental Cuts Deeper at ContiTech

Continental is implementing another round of significant restructuring measures within its ContiTech rubber and plastics division. This strategic move is designed to adapt to ongoing weaker market conditions and fundamentally lower the division's cost base, as previous actions were deemed insufficient to address the challenges.

The company is targeting substantial annual cost savings of €150 million, expected to be realized from 2028. The majority of these savings are anticipated to stem from reductions within administrative functions. This new program, set to be rolled out across all ContiTech operations starting in 2026, will involve relocating activities, eliminating jobs, and revising internal processes.

While specific numbers for job cuts in Germany are pending agreement with employee representatives, reports suggest up to 1,500 additional positions could be affected. These efforts are being undertaken irrespective of Continental's previously stated intention to divest ContiTech, emphasizing the necessity of a competitive cost structure for the division's long-term viability.