Schaeffler Layoffs: Firm To Fire 4,700 Employees In THIS Region

Schaeffler, the German manufacturer of automotive and industrial components, announced plans on Tuesday to reduce its workforce by 4,700 jobs across Europe, a move prompted by ongoing challenges in the automotive sector. The announcement follows a difficult third quarter, during which the company saw its operating profit nearly halved. Germany will be the hardest hit, with approximately 2,800 jobs set to be cut across ten sites, while additional layoffs will be spread across other European locations, according to a report in Reuters.As reported by Reuters, Schaeffler stated that the planned layoffs were a response to "the challenging market environment, the increasing intensity of global competition, and ongoing transformation processes affecting the automotive supply industry." These pressures are exacerbated by broader challenges facing the European automotive sector, including rising costs, the shift to electric vehicles, declining demand, and increased competition from Chinese manufacturers.According to the report, Schaeffler's cost-cutting measures, which aim to save around 290 million euros annually by 2029, will come with an upfront cost of approximately 580 million euros. Most layoffs will result from site closures and employee displacements, leading to a net reduction of about 3,700 jobs, or 3.1 per cent of the company’s 120,000-strong workforce.In the third quarter, Schaeffler’s earnings before interest, taxes, and special items plummeted 44.9 per cent to 187 million euros, falling short of analysts’ expectations of 209.4 million euros, according to the report. This decline mirrors challenges faced by other European auto suppliers, such as Sweden’s SKF and France’s Valeo, both of which reported similar downturns in the European and Chinese markets.Following Schaeffler's recent merger with electric powertrain specialist Vitesco, which expanded its workforce, the company had already anticipated a reduction in administrative roles. Despite the setbacks, Schaeffler remains focused on successfully integrating the merger while adapting to the rapid transformation of the automotive sector, particularly the shift toward electric mobility.Germany's automotive industry grapples with some of Europe's highest labour and energy costs. This challenging environment has led even Volkswagen, Europe's largest carmaker, to explore the possibility of closing domestic plants. The company’s shift comes as it faces tensions with unions over proposed wage cuts.Also Read: Bosch Layoffs: Firm Plans To Fire 7,000 Employees Amid Ongoing Business Challenges

Schaeffler, the German manufacturer of automotive and industrial components, announced plans on Tuesday to reduce its workforce by 4,700 jobs across Europe, a move prompted by ongoing challenges in the automotive sector. The announcement follows a difficult third quarter, during which the company saw its operating profit nearly halved. Germany will be the hardest hit, with approximately 2,800 jobs set to be cut across ten sites, while additional layoffs will be spread across other European locations, according to a report in Reuters.

As reported by Reuters, Schaeffler stated that the planned layoffs were a response to "the challenging market environment, the increasing intensity of global competition, and ongoing transformation processes affecting the automotive supply industry." These pressures are exacerbated by broader challenges facing the European automotive sector, including rising costs, the shift to electric vehicles, declining demand, and increased competition from Chinese manufacturers. According to the report, Schaeffler's cost-cutting measures, which aim to save around 290 million euros annually by 2029, will come with an upfront cost of approximately 580 million euros.

Most layoffs will result from site closures and employee displacements, leading to a net reduction of about 3,700 jobs, or 3.1 per cent of the company’s 120,000-strong workforce. In the third quarter, Schaeffler’s earnings before interest, taxes, and special items plummeted 44.

9 per cent to 187 million euros, falling short of analysts’ expectations of 209.4 million euros, according to the report. This decline mirrors challenges faced by other European auto suppliers, such as Sweden’s SKF and France’s Valeo, both of which reported similar downturns in the European and Chinese markets.

Following Schaeffler's recent merger with electric powertrain specialist Vitesco, which expanded its workforce, the company had already anticipated a reduction in administrative roles. Despite the setbacks, Schaeffler remains focused on successfully integrating the merger while adapting to the rapid transformation of the automotive sector, particularly the shift toward electric mobility. Germany's automotive industry grapples with some of Europe's highest labour and energy costs.

This challenging environment has led even Volkswagen, Europe's largest carmaker, to explore the possibility of closing domestic plants. The company’s shift comes as it faces tensions with unions over proposed wage cuts. Also Read: Bosch Layoffs: Firm Plans To Fire 7,000 Employees Amid Ongoing Business Challenges.