Continental and Labour Representatives Agree on 1,600 ContiTech Job Cuts in Germany
Agreement Details and Implications for ContiTech Employees
Overview of the Agreement
BERLIN, May 7 (Reuters) - The rubber and plastics division of Continental has reached an agreement with labour representatives in Germany on a cost-saving programme involving around 1,600 job cuts, the company said on Thursday.
Voluntary Programme for Employees
Following the agreement, Continental will launch a voluntary programme offering eligible employees at the ContiTech business the option to leave under agreed conditions, starting from Friday, a statement said.
Financial Goals and Strategic Focus
Annual Cost Savings Target
Continental had previously announced plans to save 150 million euros ($177 million) annually from 2028 at ContiTech, which it aims to sell this year to focus solely on its core tyres business.
Union Involvement and Job Security
The IGBCE union for the German chemicals industry said the agreement ruled out forced redundancies until at least the end of 2030 and included a commitment to the company's German sites.
Employee Representatives' Role in Buyer Selection
Employee representatives will be involved in the selection of a buyer for ContiTech, it added in a statement.
Context: Global Job Cuts and Workforce Size
The job cuts are part of previous plans by ContiTech to axe around 3,000 positions worldwide to increase competitiveness.
The division currently employs more than 20,000 people, including 7,700 in Germany.
Additional Information
($1 = 0.8495 euros)
(Reporting by Patricia Weiss and Rachel MoreEditing by Ludwig Burger)
