Continental, the german car components manufacturer, deepened its cost-cutting programme and warned that another 10,000 tasks had been at an increased risk, because the coronavirus crisis hammered the worldwide automobile business.
The hanover-based organization, whose customers through the worlds largest carmakers, announced last year that 20,000 jobs would-be suffering from its restructuring plan, because it desired to spot savings to invest in an expensive technological change to electric automobiles.
On tuesday, the group virtually doubled the sheer number of functions at an increased risk in germany, from 7,000 to 13,000, and cautioned that the strategy will most likely resulted in moving or closing of facilities and functions at areas where prices are persistently too much.
Continental, which hires more than 230,000 individuals worldwide, and practically 60,000 in germany, has axed 3,000 functions as part of its 10-year program, which it states could save the business 1bn yearly from 2023.
The entire automotive industry is currently faced with enormous challenges, said elmar degenhart, chief executive.
It will demand a lot from united states for the short term and press us to your limits into the coming years, he added. after approximately 10 years of fast, profitable growth and staff development in line with the development model of the automotive business in those days, we are now gearing our operations to a different particular growth with future technologies.
In july, the company said it couldn't anticipate global automobile product sales recovering to 2017s record of greater than 95m vehicles until at least 2025.
But on tuesday employees associates in germany accused the organization of exaggerating the results of current downturn to justify job slices.
Under the guise regarding the corona crisis, everything that no further meets the profitability requirements is obviously now is swept away, said francesco grioli of this ig bce union, who is also a member of continentals supervisory board.
Mr grioli added that ig bce ended up being open to innovative solutions such as a temporary decrease in working hours or retraining schemes.
Continental stated opportunities in its pc software divisions as well as in electric automobile technology will cause new tasks, but declined to anticipate exactly how many of this 30,000 staff whoever functions are currently at risk would be able to discover additional work in the company.
Earlier on this year, continental came under fire for continuing to pay for a dividend of 3 a share, totalling 600m, despite having placed several thousand workers on furlough.