Schaeffler Announces 3,460 Job Cuts and Site Closures Amid Shift from Combustion Engines
Automotive supplier Schaeffler has announced a major restructuring plan involving the elimination of 3,460 jobs and the closure of five European production sites. The majority of these cuts—approximately 2,660 positions—will occur in Germany as the company seeks to reduce overcapacity in its internal combustion engine (ICE) component divisions. This move is driven by weakening demand for traditional engine parts and a slower-than-anticipated transition to electric vehicles. The restructuring aims to improve efficiency and address high labor costs, with the company projecting an annual earnings boost of approximately 300 million euros starting in 2030. To diversify away from the volatile automotive sector, Schaeffler plans to pivot toward growth areas including defense, robotics, and automation. This shift reflects broader economic pressures facing the German industrial base as it faces intense competition from Chinese manufacturers.
Topics: automotive industry cost reduction electric vehicles job cuts manufacturing