The job cuts will affect 3.1% of Schaeffler's total workforce of 120,000 employees. Germany will bear the brunt of the reductions, with 2,800 positions eliminated across 10 sites. The rest of Europe will see 1,900 job cuts and the closure of two facilities. While 4,700 positions will be eliminated, the net reduction will be 3,700 as the company plans to redeploy 1,000 employees.
Schaeffler's decision comes as the automotive industry faces a slowdown, which is impacting supply chain companies. The company's financial results reflect this trend, with adjusted earnings before interest and tax falling by 45% to €187 million in the third quarter.
German automakers are dealing with broader challenges. Volkswagen, Schaeffler's largest customer, is considering unprecedented plant closures in Germany and negotiating a 10% wage reduction with unions.
Other automotive suppliers are also feeling the pinch. Bosch has warned it will miss its financial targets. ZF Friedrichshafen plans to cut 14,000 positions by 2028 and has lowered its annual guidance. Continental is planning to spin off its struggling automotive components division.
Despite the cuts, Schaeffler remains committed to its long-term growth strategy. The company will continue to invest in key areas such as electric mobility and renewable energy technologies.
Source: Schaeffler
