HANOVER (dpa-AFX) - Tire and plastics technology group Continental plans to slash 3,000 jobs worldwide at its plastics subsidiary Contitech, including 1,600 in Germany. An agreement on the framework conditions has now been reached with the IGBCE union, according to statements from both parties. The union described the deal as a comprehensive transformation package.
The agreement governs the socially responsible reduction of approximately 1,600 positions in Germany, the company stated. A portion of the affected activities will be relocated abroad. Compulsory redundancies are to be avoided until at least the end of 2030, according to the IGBCE.
150 million euros in savings
The downsizing is part of the cost-cutting program announced by Conti in November. Starting in 2028, the company aims to achieve annual savings of 150 million euros. While the group had previously indicated that job cuts would be necessary to reach this goal, specific figures had not been disclosed until now.
Although the job cuts could not be averted, said IGBCE executive board member Francesco Grioli in a statement, 'We cannot prevent this.' However: 'The agreements mitigate the consequences for the employees affected by the job losses.' He added that the deal creates 'prospects for German sites,' including investment commitments. 'Despite the pain, the package is a respectable outcome.'
Contitech stated its intention to 'implement all measures as socially responsibly as possible.' The newly agreed package includes a voluntary redundancy program, early retirement schemes, and targeted placement of affected staff into other roles, both internally and externally.
Spin-off planned by year-end
Contitech had already announced plant closures in several German states last year. The division currently employs more than 20,000 people worldwide, with approximately 7,700 based in Germany. Contitech supplies products such as hoses, drive belts, and conveyor belts to various industries.
Continental is currently seeking a buyer for the subsidiary, with plans to divest Contitech by the end of the year. The group intends to retain only its core tire business. According to the IGBCE, the agreement reached now explicitly applies to any future buyer of Contitech./fjo/DP/jha
