FRANKFURT (dpa-AFX) - The automotive supplier Continental plans to merge its automotive locations in Hesse and cut a total of 1200 jobs. The Schwalbach and Wetzlar sites will be closed by the end of 2025 and work will be gradually relocated to Frankfurt and Babenhausen, the company announced on Tuesday. Some of the workforce will then be relocated. The remaining jobs are to be cut in a "socially responsible" manner.

Jobs are also to be cut or relocated in Frankfurt and Babenhausen. A total of 2300 of the current 8000 employees in the Rhine-Main region will be affected, 1100 of whom are to relocate. Both administration and research and development are affected.

"With these measures, we are improving our cost structure and, in particular, strengthening cooperation in research and development," said Automotive CEO Philipp von Hirschheydt according to the press release. Frankfurt, already the headquarters of the Automotive division, is to be expanded into a competence center for vehicle software and architectures, while Babenhausen will become a pure location for displays and cockpits.

The job cuts are part of the consolidation program announced in February for the weakening division. Worldwide, 7150 jobs are to be cut and locations merged. As a result, administrative costs are to be reduced by 400 million euros from 2025 and expenditure on research and development is to fall below ten percent of turnover by 2028./fjo/DP/ngu