Schaeffler Announces 3,460 Job Cuts and Plant Closures in Europe

German automotive and industrial supplier Schaeffler announced a major escalation of its cost-cutting program, revealing plans to eliminate 3,460 positions across Europe, with 2,660 of those job cuts slated for Germany. The company also confirmed the closure of five sites, including four domestic facilities located in Dortmund, Berlin, Morbach, and Schwalbach.

Chief Executive Klaus Rosenfeld attributed the deep structural adjustments to the ongoing crisis within Europe's automotive sector, citing weak vehicle demand, high personnel costs in Germany, and intense global competition. The latest measures build on previous restructuring efforts announced in late 2024, which included thousands of job reductions and early-retirement agreements following Schaeffler's acquisition of rival Vitesco.

Under the new restructuring timeline, production operations will bear approximately 50 percent of the job cuts, while research and development will absorb 30 percent, and other functional areas will account for the remaining 20 percent. A total of 16 European sites are impacted by the measures, which leadership hopes will streamline the organization and reduce overcapacity.

The closures will affect specific operations significantly, such as the research and manufacturing facility in Berlin's Moabank district and the plant in Morbach, Rhineland-Palatinate. Meanwhile, most of the approximately 385 employees at the Schwalbach site near Frankfurt are expected to be relocated to a nearby facility, though roughly 190 jobs remain directly affected by the changes.

In addition to workforce reductions, Schaeffler plans to adjust special machinery operations in Erlangen and Schweinfurt, end tool-making activities in Höchstadt, and implement structural changes at several other locations including Herzogenaurach, Bühl, Nuremberg, and Regensburg. The company is also proposing a temporary salary waiver for remaining personnel, beginning with the executive board, to function as a solidarity contribution.

Labor representatives and trade unions sharply condemned the announcement. Thomas Höhn, an official representing the IG Metall union, criticized the strategy by stating that one job-cutting program follows another before the consequences of previous measures are addressed, arguing that the plan lacks a forward-looking concept for Germany as an industrial base.

Uli Schoepplein, the chairman of the group works council, echoed these concerns, asserting that continuously cutting staff and closing sites weakens rather than strengthens domestic operations. Representatives have demanded a concrete future strategy detailing what products and technologies will continue to be developed and manufactured in Germany.

Schaeffler estimates that the comprehensive savings program will generate one-off expenses of approximately €480 million while ultimately improving annual earnings by €300 million starting in 2030.