German corporation Continental A. G. (Continental) is currently assessing potential cost-cutting measures, including forced layoffs, in response to the growing market deterioration following theCOVID-19 pandemic. Continental said that it was taking a series of new cost-cutting measures this year in addition to its 10-year structural programme, which was announced in September last year. The programme will focus on Continental’s medium- and long-term competitiveness driven by transformation within the automotive industry.
Silke Bernhardt, Head of Communications (Tyres) at Continental, revealed, “The extent of further potential measures will be aligned with the medium-term market development.”
“As soon as the highly volatile market environment has stabilised and we can better predict how it will develop, [the company] will consider and decide any additional measures that may become necessary,” Bernhardt said.
Continental reported weak results for the quarter ending March 31 – a 21% decline in earnings on 11% lower sales. It further expects the second quarter of this year to be “the weakest,”due to the impact of the coronavirus pandemic.
Meanwhile, as a sign of solidarity with employees who have been affected by the coronavirus pandemic around the world, Continental’s Executive Board has decided on a salary waiver for its members – their fixed salary will be reduced by 10% for four months – in addition to variable remuneration.