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.
Continental, German automotive supplier, will cut 665 out of 1,465 jobs at its site in Gifhorn by the end of 2023. However, there will be no compulsory redundancies and the site's inventory has been guaranteed until 2025. Continental will stop producing electric motors at the site in Gifhorn because Renault, the French car manufacturer, has chosen not to renew its contract with the company. In addition, the production of brake cylinders will be outsourced to a low-wage country in Eastern Europe over the next few years. Nevertheless, air suspension systems and electronic brakes will still be produced at the Gifhorn site.
Continental is an international automotive supplier currently employing around 190,000 people across 53 countries. Since 2010, the German branch has been subject to frequent restructuring (see 2013, 2015) but also job creation (see 2011, 2012).
Update 02/05/2016: On 2 May 2016, Continental reported on the latest news of the restructuring measures in Gifhorn which were announced in November 2014. A strategy for safeguarding the future of the site has been signed and the company will cut 600 out of 1,400 jobs at its site in Gifhorn by the end of 2023. Both sides agreed on a socially acceptable plan without compulsory redundancies. Continental will offer redundancy packages worth up to €200,000 to affected employees. This package is expected to be one of the most expensive redundancy packages in the history of the company. According to the plant manager, this agreement is an important step to ensure the competitiveness of the site. The workforce will be reduced gradually. The plan provides a reduction of 400 employees by the end of 2019. Further 100 employees will have to leave the company by 2020 and the remaining 100 out of 600 redundancies will be carried out by the end of 2023.
In return, Continental guarantees the preservation of the plant until 2025 and will invest €100 million to produce a new generation of electronic brakes as well as air suspension and tube systems. Executive board and employee representatives want to encourage older people to leave the company voluntarily in order to keep young workers. The corporate group also relies on partial retirement and a reduction of working hours.
Eurofound (2015), Continental, Internal restructuring in Germany, factsheet number 85236, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/85236.
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