Schaeffler plans to eliminate 3,460 positions across Europe and close four production sites as it restructures its business. The German automotive and industrial supplier says the measures respond to pressure on Europe’s automotive industry, high labor costs in Germany and a complex management structure. The company expects job cuts to begin next year and aims to complete the process by the end of 2028, subject to talks with employee representatives.
How many jobs will Schaeffler cut?
The restructuring plan covers 3,460 positions across Europe, including 2,660 in Germany. Schaeffler employed about 32,000 people in Germany at the end of September. The company intends to begin implementing the reductions next year, with the schedule shaped by negotiations with employee representatives.
Schaeffler says it plans to offer employees a socially responsible severance package. It expects the job-cutting process to finish no later than the end of 2028.
Which Schaeffler sites will close?
Schaeffler plans to shut four German sites. The closures include its electric-vehicle research and development center in Berlin and factories focused on combustion-engine technologies in Dortmund, Morbach and Schwalbach. The decision will therefore affect both electric-vehicle development and production tied to conventional engines.
How much will the restructuring cost, and how much will it save?
Schaeffler estimates that the program will generate one-off costs of €480 million. In return, it aims to achieve recurring annual savings of about €300 million from 2030. The savings target reflects the company’s plan to lower operating costs after completing the restructuring.
The new program follows earlier measures. Schaeffler says it completed structural changes announced in November 2024 and put 1,800 partial-retirement agreements in place at the start of October. The company has now launched an additional restructuring program.
Why is Schaeffler restructuring?
Schaeffler cites the crisis in Europe’s automotive industry and the structural changes facing the sector. It also points to high labor costs in Germany and what it describes as organizational complexity caused by multiple management layers.
Alongside restructuring its automotive operations, the company plans to pursue growth opportunities in areas such as defense and humanoid robotics. The strategy aims to reduce costs in established activities while developing business in new markets.
What were Schaeffler’s latest financial results?
Schaeffler reported third-quarter sales of €5.8 billion, slightly below the figure for the same period a year earlier. Operating profit fell 7.2% over year to €245 million, while the operating margin declined by 0.3 percentage points to 4.2%.
The company had already lowered its medium-term targets through 2028 in June. The latest results and revised outlook add context to its decision to pursue further cost reductions.
What do the union and employee representatives say?
Thomas Höhn, IG Metall’s representative at Schaeffler, criticized the company for launching another round of cuts before the effects of earlier measures had been fully assessed. He said the approach did not provide a sustainable plan for Germany’s future as an industrial centre.
Works Council Chair Uli Schoepplein said repeatedly targeting German sites conflicted with the company’s stated commitment to the country. Reports also say management has asked employees to consider a solidarity program that would involve voluntarily giving up part of their wages. Employee representatives had not yet made clear how they would respond, as collective bargaining talks and strikes led by IG Metall continued.
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