By TheDailyNewsHub Reporter
German automotive supplier Schaeffler has announced plans to eliminate 3,460 jobs across Europe and close five sites as the region’s car industry faces weakening demand, rising competition and a slower-than-expected transition to electric vehicles.
The restructuring programme, announced on Tuesday, November 3, will affect 16 locations across Europe, with approximately 2,660 positions targeted for reduction in Germany and another 800 across other European countries. The measures are expected to be implemented by 2028.
Four of the five sites scheduled for closure are in Germany: Dortmund, Morbach, Berlin and Schwalbach. The fifth is in Herstal, Belgium.
The Dortmund facility employs approximately 430 people, while the Morbach site has around 160 employees. Both plants manufacture components for combustion-engine vehicles. Schaeffler also plans to discontinue operations at its Berlin site, which employs about 270 people.
At Schwalbach, where approximately 385 employees work, a large proportion are expected to transfer to the company’s Frankfurt location. Around 190 positions at the site are expected to be affected by the overall reduction.
The company said approximately half of the planned job reductions would come from production, 30 per cent from research and development, and the remaining 20 per cent from other functions.
Schaeffler attributed the decision to persistent difficulties in the automotive industry, including weaker demand for internal combustion engine vehicles, delayed growth in electric mobility, excess production capacity and intensifying international competition.
The company also cited high personnel costs in Germany and organisational complexity as factors affecting its competitiveness.
The restructuring is expected to generate annual savings of approximately €300 million from 2030. Schaeffler estimates that implementing the programme will involve one-off costs of around €480 million, most of which will be recognised in 2026.
The company said the reductions would be implemented in consultation with employee representatives and in a socially responsible manner. It also indicated that some positions would be created in emerging business areas, including humanoid robotics and defence.
The announcement adds to mounting pressure on Germany’s automotive industry, where manufacturers and suppliers are undertaking major restructuring programmes in response to competition from Chinese companies, high operating costs and changing consumer demand.
Other major manufacturers have also announced workforce reductions. Mercedes-Benz, for instance, is preparing another voluntary severance programme in Germany as it seeks to reduce costs amid intensifying competition in China.
Schaeffler’s latest decision highlights the challenges facing traditional automotive suppliers as the industry adjusts its production capacity and investment priorities to changing technologies and market conditions.