Schaeffler Announces Major Job Cuts and Site Closures Across Germany and Europe

Schaeffler AG, a prominent German automotive and industrial supplier, has unveiled plans to cut 3,460 jobs across Europe, including 2,660 within Germany, alongside closing multiple production sites. This restructuring aims to sharply reduce costs amid rising personnel expenses and overcapacity concerns.

The company is set to close four sites in Germany—Berlin, Morbach, Schwalbach am Taunus, and Dortmund, with Dortmund’s location, employing 430 workers, being the largest affected. In total, Schaeffler's cost-saving strategy targets annual savings of €300 million by 2030, though it will incur one-time restructuring charges estimated at €480 million. The company will also scale back production and development capacities in France, Belgium, and Slovakia.

CEO Klaus Rosenfeld highlighted the necessity of consolidating locations and optimizing workforce costs, particularly noting Germany's high personnel expenses as a significant challenge to competitiveness. These moves follow previous reductions of 2,400 jobs in 2024 and a recent program cutting 1,800 positions.

However, Schaeffler’s announcements have faced criticism from labor representatives and unions like IG Metall, who argue the persistent job cuts underscore a lack of a clear, sustainable industrial future for Germany. While Schaeffler’s third-quarter revenue dipped slightly to €5.8 billion and operating profit fell by 7.2% to €245 million, it reported some growth in other segments, including humanoid robotics.

As Schaeffler pushes forward with this comprehensive restructuring, negotiations on voluntary salary reductions across all workforce levels are planned to further drive savings. The company’s actions reflect broader pressures within the automotive supplier sector to adapt to shifting markets and cost structures amid increasing economic uncertainties in Germany and Europe.