German automotive supplier Schaeffler plans to eliminate 3,460 positions across Europe as it responds to rising costs and a deepening crisis in the automotive sector. About 2,660 of the affected positions are in Germany. The company restructuring to deliver annual savings of approximately €300 million from 2030.
When Will Schaeffler’s Job Cuts Take Place? The schedule and implementation will depend on those discussions.
The company said it had completed structural measures announced in November 2024. It also began implementing 1,800 partial-retirement agreements in early October. Schaeffler had around 32,000 employees in Germany at the end of September.
Why Is Schaeffler Cutting Jobs?
Schaeffler cites pressure on the European automotive market, high personnel costs in Germany and an organizational structure with too many management layers. The company aims to simplify that structure, reduce costs and adapt its operations to changes in the automotive industry.
The plan also reflects a shift in where the company sees future opportunities. Schaeffler is considering growth in areas such as defense and humanoid robotics as it adjusts to changing demand for automotive technologies.
How Much Will the Restructuring Cost?
Schaeffler expects the restructuring to generate a one-time cost of about €480 million. In return, it aims to save approximately €300 million each year from 2030. The expected savings are intended to provide a lasting reduction in operating costs, although the program will require significant spending before those savings take full effect.
Which German Sites Could Close?
The restructuring plan includes several German facilities. Schaeffler plans to close its electric-vehicle research and development center in Berlin. It also expects to end operations at factories in Dortmund, Morbach and Schwalbach that focus on internal-combustion engine technologies.
The proposed closures point to a change in the company’s production and research priorities. Schaeffler is reducing activity in selected traditional automotive areas while exploring newer sectors and technologies.
What Do Schaeffler’s Financial Results Show?
In the third quarter, Schaeffler reported sales of €5.8 billion, slightly below the figure for the same period a year earlier. Operating profit fell 7.2% to €245 million, while the operating margin declined by 0.3 percentage points to 4.2%.
The results underline the financial pressures facing the supplier. Schaeffler had already lowered its medium-term targets for 2028 in June, citing a weaker outlook.
How Have Unions and Employee Representatives Responded?
IG Metall representative Thomas Höhn criticized repeated downsizing programs, arguing that they do not provide a sustainable plan for Germany’s industrial future. Schaeffler Works Council Chair Uli Schoepplein also questioned the company’s commitment to Germany, saying that repeatedly targeting German sites conflicts with its public statements about the country.
Company management has reportedly asked employees to consider a solidarity program that would include voluntary pay reductions. The request comes as IG Metall-led collective bargaining discussions and strikes continue. Employee representatives have not yet made clear how they will respond to the proposal.
How Does Schaeffler’s Plan Fit the Wider German Auto Industry?
Schaeffler’s announcement adds to a broader wave of job cuts and restructuring among German automotive manufacturers and suppliers. Bosch has announced plans affecting about 22,000 positions in Germany, while ZF and Aumovio are also considering cuts involving thousands of employees.
Vehicle manufacturers face pressure as well. Around 100,000 jobs across the Volkswagen Group have been described as at risk, while BMW is carrying out a cost-cutting program affecting 8,000 employees worldwide. Together, these plans show how cost pressures and changes across the automotive sector are affecting both suppliers and carmakers.
Schaeffler plans to cut 3,460 jobs across Europe as the automotive supplier restructures amid industry challenges.
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