German automotive supplier Schaeffler plans to eliminate approximately 3,460 positions across Europe, including 2,660 jobs in Germany and another 800 elsewhere on the continent, as part of a cost improvement programme targeting annual savings of around €300 million.
The restructuring reflects mounting pressure on the European automotive industry, with Schaeffler citing weaker market demand, intensifying competition, declining sales of internal combustion engine vehicles and a slower-than-expected expansion of electromobility.
The company also points to comparatively high labour costs per employee in Germany and organisational complexity, including excessive management layers and insufficient spans of control.
Electric Mobility Division Continues to Record Losses
Electromobility is among the areas contributing to Schaeffler’s financial challenges. The company’s e-mobility division has yet to reach profitability, reporting a negative EBIT margin of 14.8% during the first nine months of the year.
The segment recorded an EBIT loss of €571 million over the same period.
Schaeffler attributes some of its difficulties in the electric vehicle market to the weakening competitive position of European automakers in China. The company also faces pressure from the slower transition to electric mobility and changing demand across the automotive supply chain.
Despite these challenges, Schaeffler continues to pursue its electrification strategy and remains active in developing technologies for electric vehicles.
Production and Research Jobs Among Those Affected
Of the planned workforce reductions, approximately 50% will affect production, 30% research and development, and the remaining 20% other functional areas.
A total of 16 locations across Europe will be affected. Five sites, including four in Germany, are scheduled for long-term closure.
In Germany, the planned reductions will affect several manufacturing and engineering facilities:
- Dortmund: The plant, which employs approximately 430 people, is scheduled to close. It belongs to the Powertrain & Chassis division and produces components for internal combustion engines.
- Morbach: The site employs around 160 people and is also part of the Powertrain & Chassis division.
- Berlin: Schaeffler plans to discontinue operations at the location, which has approximately 270 employees.
- Schwalbach: Operations are also due to end. A significant proportion of its approximately 385 employees are expected to transfer to the company’s Frankfurt site, while around 190 jobs will be affected by the changes.
Additional restructuring measures include ending toolmaking activities at Höchstadt and adjusting special machinery manufacturing at the Erlangen and Schweinfurt facilities. Further job reductions are planned at locations including Herzogenaurach, Bühl, Höchstadt, Nuremberg and Regensburg.
German Workforce Facing Further Reductions
The planned elimination of 2,660 positions represents approximately 9% of Schaeffler’s current German workforce of just under 32,000 employees.
The cumulative impact is considerably larger when previous restructuring measures are included. Together with job reductions from earlier cost programmes and approximately 1,800 early retirement agreements already signed, the overall workforce reduction amounts to around 18%.
The company is therefore pursuing a broader restructuring of its German operations rather than relying solely on the latest round of job cuts.
Management Restructuring to Reduce Complexity
Alongside workforce reductions and site closures, Schaeffler intends to simplify its organisational structure.
According to Handelsblatt, the company plans to eliminate at least two of the seven management levels currently below the executive board. Schaeffler has not confirmed a precise number of management positions to be removed but has identified reducing organisational complexity as a central objective.
The restructuring follows an earlier decision by the supervisory board to reduce the executive board to eight members. Responsibilities for research and development are being combined with production, supply chain management and procurement.
Robotics and Defence Identified as Growth Areas
While Schaeffler is restructuring its traditional automotive operations, the company is also seeking growth opportunities beyond its established business.
Humanoid robotics and defence have been identified as promising areas where the supplier can apply technologies and engineering expertise developed through its automotive operations.
Schaeffler and CATL to Develop EV Battery Management and Power Electronics
Jochen Schröder, Schaeffler’s Board Member for Production, highlighted the potential to transfer existing capabilities into these emerging markets.
“Here, we can draw on technological expertise developed in our core business,” Schröder said.
The strategy reflects Schaeffler’s efforts to diversify its business while adapting to structural changes in the automotive sector, including the transition to electric mobility and the evolving demands of industrial technology markets.