Schaeffler AG plans to cut its German workforce through an expanded phased-retirement program as weak automotive demand continues to pressure the supplier. The automotive and industrial supplier aims to reduce approximately 1,300 positions in Germany using early pension arrangements rather than forced layoffs.

The phased-retirement program expansion reflects ongoing challenges in the automotive sector, where declining demand for traditional components has squeezed margins across the supply chain. Schaeffler's approach prioritizes voluntary exits through enhanced pension packages to achieve workforce reduction targets.

This restructuring move comes as the company navigates the industry's transition toward electric vehicles, which require fewer components than combustion-engine vehicles. The German operations bear the brunt of the cuts as Schaeffler adjusts its cost base to align with shifting market realities.