Schaeffler, a German manufacturer of automotive components employing 110,000 people globally, announced on Tuesday a plan to cut 3,460 jobs across Europe. The majority of these reductions will occur in Germany, accompanied by the closure of five production units: four located in Germany and one in Belgium. The restructuring affects a total of 16 sites throughout the continent.
The company justifies the personnel reduction program by citing a crisis within the automotive sector characterized by heightened competition, declining demand for combustion vehicles, and delays in the transition to electric mobility. Approximately half of the jobs being cut are in production areas, while 30% affect research and development, and the remaining 20% impact other functional departments.
In Germany alone, the plan involves eliminating 2,660 positions. This represents roughly 9% of the company's core workforce, which stood at 31,957 employees as of late September. When accounting for previous reduction programs and 1,800 partial retirement agreements already signed, the total reduction in Germany reaches approximately 18% by 2028.
To mitigate the scale of layoffs, Schaeffler is implementing a "solidarity contribution" strategy. This includes voluntary temporary salary reductions across all hierarchical levels, from executive management downward. The company states that this measure aims to lower costs per employee, thereby reducing the need for further job cuts and associated one-off expenses. Without this initiative, the company notes that job reductions would have been significantly more extensive.
Specific German facilities facing closures or adjustments include Dortmund, which employs 430 people, and Morbach with 160 staff; both belong to the Powertrain & Chassis division and produce parts for internal combustion engines. Operations in Berlin (270 workers) and Schwalbach are also slated for closure, with many employees expected to be transferred to the Frankfurt unit. Additionally, tool manufacturing will cease at Höchstadt, while special machine production will undergo adjustments at Erlangen and Schweinfurt.
Outside of Germany, production and development capacities in French units Haguenau and Toulouse, as well as Slovakian sites Skalica and Kysuce, will also face adjustments. The company does not explicitly mention its facility in Caldas da Rainha, Portugal, which employs around 500 people.
Schaeffler projects that this program will generate annual savings of approximately 300 million euros by 2030. One-off costs are estimated at 480 million euros, with the majority recognized as restructuring provisions starting in 2026. The company expects these measures to provide immediate relief to its financial results for 2027 and 2028.
Regarding future employment, Schaeffler assured that at least some job cuts will be offset by new positions in growth sectors. Jochen Schröder, a department head responsible for production among other areas, highlighted "humanoid robotics" and "defense" as key areas for expansion.
Sources: Observador.