Despite previous reductions, auto supplier Continental has failed to meet financial goals and intends to close one plant in Germany.

Auto supplier Continental plans to shutter one plant in Germany, as the company has fallen short of financial targets, despite earlier cutbacks.

Auto supplier Continental plans to shutter one plant in Germany, as the company has fallen short of financial targets, despite earlier cutbacks.

As part of its cost-cutting measures, Continental had previously announced a round of cuts in 2024.

Continental, a German supplier of auto parts, announced significant layoffs on Tuesday, including the closure of one of its facilities.

Continental attributed its cost-cutting measures to the decline in the German auto industry.

By the end of 2026, about 3,000 research and development positions in Continental’s automotive division will be eliminated, with over half of the reductions occurring in German plants.

In addition to other plants in the German states of Hesse and Bavaria, the company’s Nuremberg facility will be shut down.

Notwithstanding Continental’s prior reductions, a company spokesperson stated that the difficult market conditions will cause the company to miss its financial goals.

In a press statement, Philipp von Hirschheydt, Continental’s chief executive for the automotive division, stated that “forward-looking technology offerings are of crucial importance to our company.”

Even as it seeks to increase “competitive strength in the interests of our sustainable market success,” Hirschheydt stated that the company will keep “investing substantially in research and development in the coming years.”

A year ago, Continental announced a round of layoffs that included the elimination of 7,150 positions in its automotive division as part of cost-cutting measures.

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The business stated that it intends to make the layoffs as socially responsible as possible, with the majority of the reductions coming from not replacing departing or retiring employees.

Representatives of the trade unions and employees will now discuss the specifics with the company.

However, the action has drawn harsh criticism from labor unions.

The head of Continental’s General Works Council, Michael Iglhaut, said in a statement, “We are deeply concerned that the deep cuts in automotive research and development will escalate into a comprehensive restructuring.”

He added that the “deliberate bleeding of the German locations” undermines the company’s overall automotive division, which Continental plans to make independent this year, and that “job cuts and cost reductions at any price” are not a sustainable strategy for the future.

That plan still needs to be approved by the company’s shareholders at the next general meeting of Continental.