German automotive supplier Schaeffler has announced a significant restructuring program aimed at addressing the ongoing crisis in the European automobile industry. The company plans to eliminate 3,460 jobs across Europe, with more than three-quarters of these cuts concentrated in Germany. Additionally, Schaeffler will close five sites on the continent as it navigates weak vehicle demand and fierce competition from Chinese manufacturers.
In a statement, the Herzogenaurach-based group, which employs approximately 110,000 people globally, attributed the workforce reductions to increased competition, a slowdown in demand for internal combustion engine vehicles, and delays in the shift toward electromobility. The specific breakdown includes 2,660 job cuts in Germany, representing 9% of its local workforce, and roughly 800 positions eliminated elsewhere in Europe. When combined with previous reduction programs and early retirement agreements signed recently, the total workforce decrease is projected to reach approximately 18% by 2028.
The restructuring affects various departments within the company, with half of the job cuts targeting production roles, 30% impacting research and development, and the remaining 20% affecting other functions. Of the 16 European sites involved in these reductions, four will close in Germany—specifically in Berlin, Dortmund, Morbach, and Schwalbach—while one site in Belgium will also shut down. Schaeffler aims to achieve annual cost savings of 300 million euros starting in 2030, with the implementation of these measures primarily taking place throughout 2027 and 2028.
The company frames these announcements as part of a broader diversification strategy. Schaeffler stated that at least some of the job losses would be offset by new positions created in emerging growth sectors. Jochen Schröder, a member of the executive board responsible for production, highlighted "humanoid robotics" and "defense" as key areas for expansion. This aligns with recent developments, such as the company's October announcement regarding its plans to assemble drones for the French military.
Sources: Le Figaro.