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Manufacturer Continental to lay off 230 people in Czechia, most in Brandýs nad Labem

Translated by Milo Dvorak

29. 2. 2024

Business Newsletter #12

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Published by E15 on 23 February 2024.

Manufacturer Continental to lay off 230 people in Czechia, most in Brandýs nad Labem

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Approximately 230 employees will lose their jobs at the Continental Automotive Czech Republic plants, primarily affecting administrative positions. The company's spokesperson, Petr Kubíček, announced this to the media on Wednesday. The layoffs in the Czech plants are part of the cost-cutting programme of the German conglomerate Continental, aiming to eliminate around 7,150 positions in automotive activities, equivalent to over three percent of the company's total workforce. The layoffs will have the most significant impact on the Brandýs nad Labem plant in Central Bohemia, as reported by e15 in mid-February.

In Brandýs nad Labem, the conglomerate will cut approximately 200 administrative positions over the next two years. "This represents about seven percent of this factory's total workforce," clarified Kubíček. In the Adršpach, Jičín, and Frenštát pod Radhoštěm plants, which currently employ over 2,400 people, about thirty administrative employees will collectively lose their jobs across the plants. E15 has previously reported that the job cuts would not affect the Otrokovice tire production plant in the Zlín region.

"Continental's priority now is to gradually inform all teams individually and take the necessary steps towards our employees as sensitively and socially responsibly as possible," stated the company.

The automotive parts manufacturer had announced cost-cutting measures in November of the previous year, planning to eliminate approximately 5,500 jobs, aiming to achieve savings of €400 million, or over 10 billion Czech crowns. With these measures, Continental seeks to strengthen the competitiveness of its automotive activities during a time when the industry is transitioning from combustion engine vehicles to electric cars.

The Continental plant in Brandýs nad Labem is among the traditional suppliers to global car manufacturers, employing more than 3,000 people. The facility produces car radios, multimedia systems, front displays, dashboard instruments, climate control panels, and fuel system control units. Its products can be found in brands such as Volkswagen, Škoda Auto, BMW, Fiat, Toyota and Volvo. Since November of the previous year, the plant has had a new CEO, Frenchman Matthieu Turlure.

In addition to Brandýs, Continental operates six more plants in the Czech Republic – in Otrokovice, Jičín, Adršpach, Frenštát pod Radhoštěm, Horšovský Týn and Ostrava. The company reduced its loss to two billion Czech crowns from 3.56 billion Czech crowns in 2021 the year before last, and increased its revenue by one billion to 46 billion Czech crowns. Continental has not yet published its economic results for the last year.

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