Schaeffler to Cut 3,460 Jobs in Major Restructuring Plan
The German manufacturer will close four domestic plants to cut costs amid falling demand for combustion vehicles.
German automotive parts manufacturer Schaeffler has announced the elimination of 3,460 jobs across Europe. The decision follows a cooling market for traditional vehicles and rising competition within the sector.
The plan includes the closure of four manufacturing facilities in Germany located in Dortmund, Morbach, Berlin, and Schwalbach. One plant in Belgium will also be shut down while facilities in France and Slovakia will undergo operational adjustments.
Half of the layoffs will affect the production line. Another 30 percent of the cuts will occur in research and development with the remainder concentrated in administrative areas. The company estimates costs of 480 million euros to implement these changes.
The company aims to generate annual savings of 300 million euros starting in 2030. It intends to redirect investments toward defense and humanoid robotics to compensate for the decline in its automotive division.
To mitigate the impact of the layoffs, management has proposed a solidarity contribution involving voluntary salary cuts. Negotiations with unions will take place over the coming years with the main execution scheduled between 2027 and 2028.
Spotted an error? Write to suporte@criptoico.com.br.
