Seattle-based fleet technology company Zonar Systems laid off 57 employees Wednesday.
A company spokesperson on Monday confirmed the layoffs, adding that Zonar still has more than 300 employees in North America. Zonar's layoffs come as its parent company, Continental, considers spinning out its automotive business.
"All lines of business across the organization are under review," Zonar CEO Michael Gould said in an emailed statement. "Recently, Continental automotive leadership announced a restructuring effort and as part of that, has changed its focus on several projects Zonar supports. The business and markets Zonar serves remain unchanged.”
Zonar, founded in 2001, makes hardware and software to help clients manage their fleets of vehicles. Its services include vehicle tracking, inspection technology and tablets to help drivers be more productive. Zonar works with student buses, commercial trucking fleets, vocational fleets and transit fleets.
Continental, which is headquartered in Germany, acquired a majority stake in Zonar in 2016. Continental's automotive services are aimed at safety, braking and motion control, among other areas. The company also has a tires segment and its ContiTech segment, which focuses on serving specific industries like mining and agriculture.
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Earlier this month, Continental announced plans to spin off its automotive business and keep its tires and ContiTech segment housed under the Continental brand. The company expects its executive board to make a final decision in the fourth quarter, and then the move would need shareholder approval during a meeting in April. If shareholders and the board approve the spinout, the goal is to complete it by the end of next year.
Continental generated $22 billion in sales during the first half of 2024, down from $23.1 billion during the same period last year. Its automotive division generated $10.9 billion in sales during the first half of 2024, down from $11.3 billion during the first half of 2023.
Gould, previously Zonar's chief operating officer, took over as CEO in August of last year.
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