Schaeffler, the German auto parts giant with €23.5bn annual revenue, plans to eliminate 3,500 jobs and close four German sites, representing three quarters of the cuts. Including prior restructuring, the firm will have reduced its German workforce by a quarter.
The move reflects mounting pressure on Germany’s automotive sector, a pillar of European manufacturing, as it grapples with the transition to electric vehicles, high labor costs, aggressive Chinese competitors, and sluggish car demand across the continent. Rival Volkswagen, Germany’s largest industrial employer, is also shedding 100,000 jobs and shutting four factories after a September union deal.
Klaus Rosenfeld, Schaeffler’s CEO, said the cuts will put the German production base on a sustainable, cost‑efficient footing, noting that developing and manufacturing in Germany and Europe can be competitive long‑term. Shares are down 30% this year, and the firm warned in July that 2028 revenue could be about 11% lower than expected, around €25bn. It is also asking executives and staff for a temporary “solidarity contribution” to cut per‑employee costs.
In October, falling sales caused a €240 million impairment of its electric drivetrains division because of surplus equipment. The moves highlight the wider crisis in the German economy and European manufacturing, with analysts watching for further fallout across the industrial goods sector.
Source: Financial Times Companies · Summarized by HeadlinesBriefing