Conti Cuts 6,000 Jobs in 2009 Q1

23rd April 2009 | 0 Comments

German news sources have reported that Continental cut 6,000 jobs from its worldwide operations during this year’s first quarter. Karl-Thomas Neumann, the manufacturer’s chief executive, told shareholders at the annual meeting in Hanover that an additional 25,000 workers will be working shorter hours by the end of April. Both actions are at least partially related to the “major challenge” facing the company as a result of the mingling of loan agreements, deflated auto markets and ongoing global financial turmoil, if it is to meet debt and earnings conditions agreed when the company bought Siemens’ VDO automotive-electronics division in 2007. Conti is facing up to a 3.5 billion-euro payment in August 2010 as a result of that purchase, which has necessitated the forthcoming change of strategy, to be announced within 100 days according to Neumann.

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Category: Product News

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