Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
The German automotive supplier Continental, headquartered in Hanover, has announced a reduction of around 1200 jobs at its sites in Wetzlar and Schwalbach (Hesse).
The reason for the job cuts is the relocation and merger of the Wetzlar and Schwalbach sites to Frankfurt and Babenhhausen. The measure is part of the company's plan to increase competitiveness. Consolidation is to take place gradually and be completed by the end of 2025.
The measures are expected to affect a total of around 2,300 jobs in Continental's Automotive division in the Rhine-Main region. Of these, around 1,200 jobs are to be cut and around 1,100 relocated to the locations in Frankfurt and Babenhausen. Continental's Automotive sector currently employs around 8000 people in the Rhine-Main region.
The IG Metall trade union has announced its intention to gather its forces and campaign for the retention of the Wetzlar site. Almost 200 employees protested against the closure plans at the Schwalbach site.
The company had a turnover of €41.4 billion in 2023 and around 200,000 employees at 56 locations worldwide.
Updated, 22/01/25 The company has announced that around 360 of the 430 employees at the Wetzlar site will lose their jobs, which is 200 more than originally planned. Initially, it was expected that 160 employees in Wetzlar would lose their jobs, with 220 relocating to Frankfurt and 80 to Babenhausen. Now, only 18 to 30 employees and 41 trainees will be able to move to Frankfurt.
Continental cites the challenging market situation in the automotive industry as the reason. Additionally, the planned technology center in Frankfurt will no longer be established. A Continental spokesperson stated that efforts are being made to provide socially responsible solutions, such as early retirement and severance packages.
The additional 200 layoffs in Wetzlar bring the total to 1,400.
Eurofound (2024), Continental Automotive, Relocation in Germany, factsheet number 201054, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/201054.
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