Continental, the German auto parts manufacturer, is moving to reduce its global workforce significantly within the automotive division. Reported by Bloomberg, the plan fits the company’s aim to boost competitiveness as the auto industry pivots toward electric powertrains and new mobility services.
In total, about 7,150 roles are slated for elimination, representing roughly 3.6% of Continental’s worldwide staff. The breakdown shows around 1,750 positions will be cut in research and development, while roughly 5,400 administrative roles will disappear. Approximately 40 percent of the layoffs are expected to impact employees based in Germany, according to the coverage.
Beyond job cuts, Continental is actively weighing the consolidation of certain production facilities in Germany and other regions. The company has signaled a plan to reduce research and development costs to about 9% of sales by 2028, compared with roughly 12% in the current year, illustrating a broader effort to align costs with shifted demand and capital expenditure in electrification and software-enabled mobility.
In a separate tech sector development, Microsoft reportedly decided to trim its Xbox gaming division headcount by about 2,000 roles. The announcement, attributed to Xbox head Phil Spencer, indicates that a substantial portion of these reductions would involve staff from Activision Blizzard, reflecting ongoing consolidation in large ecosystem players across gaming and cloud services (Bloomberg).
Earlier, IBM indicated a shift in policy by signaling a return-to-office emphasis for its workforce, signaling broader realignments among major tech and manufacturing firms as they adapt to rapid industry changes and evolving work models (IBM). The trend marks an industry-wide move to recalibrate staffing, facility footprints, and cost structures in response to market dynamics and demand patterns across North America and beyond (Industry reports).