Continental, a giant in fuel vehicle parts, plans to lay off 30,000 employees: because electric vehicles are progressing too fast

Abandoning fuel vehicles and developing electric vehicles has become a global trend, and many countries have issued timetables for banning the sale of fuel vehicles. For Continental, a German auto parts giant, the rapid development of the electric vehicle industry has affected its livelihood.

Recently, Ariane Reinhart, head of human resources at Continental, said in an interview with the Financial Times that there is nothing wrong with promoting electric vehicles for the sake of environmental protection, but the current speed is too fast and "is having a huge impact on employment issues."

Continental is the world's most famous auto parts company in the era of fuel vehicles. Four out of every five cars in the world use its parts. Continental's most well-known product is tires, but its engine injection systems, tachometers and other traditional fuel vehicle parts are also widely used by global automakers.

As the pace of electrification continues to accelerate, global demand for fuel vehicle parts continues to decline, which has a huge impact on Continental.

Continental has 230,000 employees. Last year, the company announced its latest cost control plan, which will affect 20,000 of them. In September this year, the number was changed to 30,000. Reinhart said that electric vehicles require far less labor than the traditional fuel vehicle industry.

Continental expects revenue of 37 billion euros this year and an adjusted profit margin of 3%. On the 2nd of this month, worker representatives accused Continental of having no interest in alternatives to layoffs and only focusing on achieving higher profit margins.

But Reinhat said that if the situation does not change significantly, Continental will not adjust its current layoff and restructuring plan.

In March, Continental's stock price fell sharply, and then rebounded along with global stock markets, but it is currently only close to the level at the beginning of the year.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.