Continental AG, a German multinational automotive parts manufacturing company, could be set to make more than 1,000 job cuts in Germany in 30 different locations, as part of 5,500 job cuts worldwide expected to be announced by Monday, reports ManagerMagazin.

In the fiscal year of 2022, the company employed some 199,000 people globally. The possible job cuts in Germany, are mainly concentrated within administrative positions, ManagerMagazin reports, citing company officials who haven’t been identified.

The report suggests that production and development are unlikely to see job cuts for the time being.

A spokesman for Continental, said that the company is looking to improve the competitiveness of its automotive branch. According to Continental spokesman Marc Siedler “This includes possible changes in administrative structures to enable faster and more agile decisions in the future and to relieve the cost side,”. Siedler also mentioned that once a decision has been made the employees, and then the public would be informed.

According to reports from Reuters, Continental recently increased their expectations for growth in the global automotive market in 2023, with a strong fourth quarter expected for its automotive business, however their outlook for 2024 has become slightly more conservative. Continental said it shared S&P Global's forecast of just 1%-3% growth in light vehicle sales next year, according to Reuters.