Union Vows to Block Further Cuts as Continental Sheds 1,600 German Jobs in Contitech Sale
Published on 07/06/2026 at 03:42 | Redaktion boerse-global.de
Worker representatives are already digging in for a fight. Francesco Grioli, a supervisory board member from the IGBCE union, warned bluntly: “Jedem Stellenabbau über die 3.000 hinaus treten wir entschlossen entgegen” — any job cuts beyond the 3,000 already announced will be met with determined resistance. The union and works councils had just negotiated a framework agreement that rules out compulsory redundancies until the end of 2030, but that did not stop Grioli from drawing a red line.
The restructuring at Contitech runs in parallel to its sale. On July 4, parent company Continental signed the contract to offload its plastics and industrial-parts division to U.S. private-equity firm Lone Star Funds for €4 billion. The transaction is expected to close by the end of 2026 and still needs antitrust clearance.
Contitech employs more than 20,000 people worldwide, roughly 7,700 of them in Germany. The job cuts total 3,000 globally, with 1,600 falling on German sites. The heaviest blow lands on Hanover, where about 700 of the roughly 3,000 local employees are slated to leave — 240 in central functions and another 260 in administration. Northeim is also affected. The reductions are being carried out through voluntary programs, part-time arrangements, transfers and early retirement, and some functions are being moved abroad.
Continental expects the divestiture to generate net cash inflows of roughly €3.1 billion. Around €2.5 billion of that will be returned to shareholders via a special dividend or share buyback; the remainder goes toward debt reduction. The purchase price can increase by up to €250 million depending on performance targets.
Lone Star, the buyer, has committed to preserving jobs and training positions and to making investments at Contitech. The framework agreement negotiated with IGBCE and the works councils locks in employment protections through 2030. Still, the union is pushing for a longer-term perspective and insists that investment promises be kept. In Continental’s consolidated balance sheet, Contitech is already classified as a discontinued operation.
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