German auto supplier Schaeffler plans 3,460 job cuts in Europe

German automotive and industrial supplier Schaeffler is intensifying its cost-reduction efforts by announcing the cancellation of 3,460 jobs across Europe, with 2,660 of those being in Germany. The company justifies the additional cuts due to the automotive industry crisis in Europe, stating that further structural adjustments are necessary. Schaeffler disclosed these plans in a statement on Tuesday, following previous measures that included 4,700 job cuts in November 2024.

The company plans to close five manufacturing sites, four of which are located in Germany. These closures will affect facilities in Dortmund, Morbach, Berlin, and Schwalbach, with sites in Höchstadt, Erlangen, and Schweinfurt also undergoing adjustments. Additionally, Schaeffler intends to discontinue tool-making activities at its Höchstadt site and make structural changes at the Erlangen and Schweinfurt sites.

Union representatives and the works council have strongly criticized the new savings program, expressing concerns that the cuts are being implemented before addressing the consequences of previous measures. The IG Metall trade union and the group works council argue that the company's approach is not forward-looking and could negatively impact Germany as an industrial location.

Schaeffler's production facilities are estimated to bear 50 percent of the job cuts, while 30 percent will be affected in research and development, and 20 percent in other functional areas. The company expects the cuts to improve annual earnings by approximately €300 million (around $332 million) starting from 2030. CEO Klaus Rosenfeld estimates that one-time costs associated with the savings program will amount to around €480 million.