German weapons manufacturer Rheinmetall, whose business has boomed amid the Ukraine war, is set to hire workers from Continental as the auto supplier cuts thousands of jobs, the companies said on Friday.
The defense group has seen demand soar as countries rush to re-arm following Russia's invasion of Ukraine.
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It is setting up new factories and said in March it was targeting a record €10 billion ($10.7 billion) in sales this year.
In contrast, Continental, which makes tires and supplies car components, is in the process of cutting over 7,000 jobs worldwide as it faces intense competition and the tricky switch to electric vehicles.
The companies said they had inked an agreement “to partly cover Rheinmetall's fast-growing personnel requirements in the coming years with Continental employees affected by the transformation” in the auto sector.
As a first step, up to 100 employees from Continental's Gifhorn plant in northern Germany, which is set to close in 2027, will get jobs with Rheinmetall at a nearby site, they said.
Events will be organized at other sites in Germany at which staff can find out about career opportunities at Rheinmetall.
Rheinmetall is the third company that Continental has signed up to its initiative to help staff find new jobs.
“The profound changes in all industries can only be tackled together,” said Continental human resources boss Ariane Reinhart.
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Peter Sebastian Krause, who oversees human resources at Rheinmetall, said Continental was an “excellent match” for the defense group.
Soaring demand – Rheinmetall is expecting sales growth of up to 40 percent in the current financial year – means the company needs to hire staff quickly, at a time Germany is suffering from shortages of skilled labor.
In a country still haunted by post-War War II guilt, Germany's weapons manufacturers were for years not the most celebrated firms.
Europe's top economy preferred to highlight its well-known carmakers or industrial giants.
That has started changing since Russia invaded Ukraine in 2022, as demand for military equipment boosts the arms industry's fortunes.
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