The manufacturer of tires and automotive components Continental announced that it will lay off 1,200 employees as part of a reorganization of its automotive division in Germany’s Rhine-Main region.
The company has decided to turn Frankfurt into the technology center for high-performance computing, so the activities of two factories in Wetzlar and Schwalbach will be moved to the financial city and Babenhausen, it said in a statement.
This decision is part of a plan to improve the company’s competitiveness that includes gradual consolidation measures until the end of 2025.
“By merging locations, the division leverages synergies, simplifies work processes, shortens development times and reduces costs through better utilization of existing infrastructure. At the same time, the headquarters of the automotive division in Frankfurt will be reinforced,” Continental indicated.
A competence center for future technologies such as high-performance computing is being built there, he added.
The measure will affect a total of about 2,300 jobs in the automotive division in the Rhine-Main region.
Of these, around 1,200 jobs will be eliminated and around 1,100 will be moved to the headquarters in Frankfurt and Babenhausen. The division currently employs around 8,000 people in the Rhine-Main region.
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Source: Gestion
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