Schaeffler AG, a key player in the European automotive supply chain, has announced plans to reduce its workforce by 4,700 across Europe, primarily affecting its German workforce. This decision reflects the challenges facing Europe’s automotive sector, as automakers like Volkswagen contend with weakened demand and production slowdowns.
The job cuts, part of Schaeffler’s strategic restructuring, are intended to “secure the long-term increase in the company's competitiveness,” according to a company statement. This restructuring will involve consolidating production, adjusting manufacturing capacities, and relocating or closing two factories outside of Germany, the details of which are expected by the end of the year.
Key Details of Schaeffler’s Downsizing:
The announcement coincided with the release of Schaeffler’s third-quarter earnings, which revealed a 45% year-on-year drop in adjusted earnings before interest and tax, down to €187 million. Shares in Schaeffler were down by 1.9% in Frankfurt following the announcement.
Related Industry Cuts and Outlook
Schaeffler’s restructuring is part of a broader trend among automotive suppliers impacted by Europe’s automotive industry downturn. Bosch, the world’s largest auto parts supplier, recently adjusted its forecast and is evaluating additional job cuts beyond the 7,000 already announced. Similarly, ZF Friedrichshafen AG, another prominent German auto supplier, has plans to reduce up to 14,000 jobs by the end of 2028.
This wave of cuts reflects the significant shifts underway in Europe’s automotive landscape as the industry transitions to electric vehicles (EVs) and faces an economic downturn. With the German car industry facing potential job losses of up to 186,000 by 2035 due to the switch to EVs, suppliers like Schaeffler are implementing strategic adjustments to navigate these challenges while aiming to maintain their competitive standing in the evolving automotive market.
