Continental AG (CON.DE) has announced a new global structural program it is calling Transformation 2019-2029 that will have it closing several locations as well as eliminating 5,040 jobs. The news of the new restructuring comes as the German auto supplier has been experiencing a decline in diesel and gasoline engine components as more electric vehicles begin to enter the market.

Continental said that it will discontinue the production and development of its high-pressure engine pumps in 2024. As a result, the company will close its Roding, Germany, plant, where 530 jobs will be cut.

In Newport News, Virginia., 720 jobs will be affected as Continental will close the plant in 2024, which produces injectors for gasoline engines. The company also said it will discontinue its diesel injector business in 2028, closing its Limbach-Oberfrohna, Germany, plant, which will cut 850 jobs.

Continental’s Pisa, Italy, plant will also be affected as it will stop production of gasoline engine injectors from 2023 to 2028. The company said that around 750 jobs will be affected.

In addition, Continental’s Babenhausen, Germany, plant will begin phasing out the production of analog display and control technologies by the end of 2025 with some research and development moved to other locations within the business by the end of 2021. Over 2,200 jobs will be cut.

The company said it will work to retrain employees and fill vacant jobs within the company as well as work with local businesses to find employment for the displaced workers.

Continental said it is looking to accelerate its move towards electric mobility, which has been driven by stricter emissions regulations. The company has seen a decline in demand for its hydraulic engine components and will begin focusing on growing technology areas that include autonomous vehicles, connected driving, and services for mobility customers as well as its tire, industrial, and end-customer businesses.

With the move to phase out its diesel and gasoline engine business and analog display and control technologies, Continental hopes to “strengthen the company’s competitiveness in the long term and ensure its viability in the future.”

“We are making good progress,” Dr. Elmar Degenhart, CEO at Continental said. “With its resolutions today, the Supervisory Board is supporting our urgently needed technological transition and thus the strengthening of our competitiveness and future viability.

“We are focusing on profitable growth areas, quickly and rigorously. These include assisted, automated and connected driving; services for mobility customers; and the tire, industrial and end-customer businesses. The jobs of the future will evolve in these growth areas.”

Shares of Continental stock were down 1.51% as of market close on Wednesday.

One in twelve workers at Continental will be impacted by changes in the coming decade
One in twelve workers at Continental will be impacted by changes in the coming decade DPA / Ole Spata