(In the last sentence of the 4th paragraph, the Elektrobit headquarters in Germany is corrected to "Erlangen". In addition, a detailed statement on the expected job cuts in Germany is added in the first paragraph).

HANNOVER (dpa-AFX) - The Continental Corporation intends to cut around 7150 jobs worldwide due to its cost-cutting efforts in the weakening automotive supply business. This corresponds to more than three percent of the total workforce. In addition to the measures already announced in the division's administration, employees in research and development (R&D) are also affected by the plans, as the DAX-listed company announced in Hanover on Wednesday. Around 5,400 jobs are at risk in the administrative areas and a further 1,750 in the research and development network. According to a spokesperson, around 40 percent of the jobs affected are in Germany. In the Rhine-Main region, division head Philipp von Hirschheydt is also looking into merging locations. Conti intends to cut jobs gradually and as socially responsible as possible.

The Group had already announced extensive cost-cutting efforts in the automotive supply sector, which has been in crisis for some time. According to information from November, the job cuts in administration are intended to reduce annual costs by 400 million euros by 2025. The company had previously announced job cuts in the mid four-digit range. It has been clear since an investor event in December that Conti is also cutting research and development expenditure. The company has not yet provided any details on how many jobs would be affected.

Investors and analysts have long criticized the fact that Conti not only earns little in the automotive supplier division, but also spends a comparatively large amount of money on research. In 2028, the proportion of the division's turnover spent on research and development is now set to fall to nine percent, compared to the current figure of around twelve percent. Previously, Conti had forecast a figure of less than ten percent as a benchmark for the medium term, i.e. the next three to five years.

"By streamlining our research and development network, we are leveraging synergies and reducing our costs," said divisional CEO von Hirschheydt. "We are aware of the cuts for our employees and will do everything we can to find good and individual solutions together with our social partners." The plans also affect 380 jobs at the software subsidiary Elektrobit with its German headquarters in Erlangen, among others./men/he