Auto Supplier Continental To Cut Thousands Of Jobs

German auto supplier Continental said Monday it will cut thousands of jobs to reduce costs, at a time the sector is facing severe headwinds.

The company, which makes tyres and supplies components, said it had not decided on the exact number of job losses but it would be in the "mid four-digit range".

The move is part of plans to make cost savings of 400 million euros ($428 million) annually.

Manager Magazin previously reported that Continental plans to slash 5,500 jobs worldwide, including 1,000 in Germany.

The group's automotive unit in particular has been struggling to keep up with rivals, as the industry transitions to electric vehicles.

Philipp von Hirschheydt, head of Continental's automotive branch, said the steps were "important in order to strengthen the competitiveness of" the unit.

Continental currently employs around 200,000 people worldwide.

The group last week reported third-quarter earnings in line with analysts' expectations.

Germany's auto suppliers have been facing problems as the transition to electric mobility gathers pace, after decades relying on fossil fuel vehicles for their profits.