German auto parts maker Continental plans to cut 5,500 jobs by 2028 after a decision was made to liquidate part of its gasoline and diesel engine business.
“We have been conducting intensive, constructive negotiations with employee representatives for some time now. The key question now is how can we implement the necessary measures responsibly and foresightedly so that we can emerge stronger from the current reorganization. We will provide our maximum support to those employees who are laid off, ”said Continental CEO Dr. Elmar Degenhart.
The Supervisory Board of Continental AG approved the structural changes on November 20th.
The plans for the reorganization were previously discussed by the company's supervisory board at its meeting on September 25, 2019. Since then, management and work councils have discussed the situation and next steps, the Continental press service said.
The report says that the supervisory board supports the decision of the company's executive board to end the business in the field of hydraulic components for gasoline and diesel engines in the coming years.
The decision to wind up part of the business came amid a disruptive shift in the automotive industry to electric mobility, which was accelerated by stricter emissions laws, Continental said.