Schaeffler to Axe 3,460 European Jobs, Close 4 German Plants
The cuts are part of a performance improvement program that aims for a net reduction of about 2,660 positions in Germany and 800 elsewhere in Europe, largely by 2028, the company said in an earnings presentation.
Production roles will bear the brunt, with about 50% of the reductions falling there, followed by roughly 30% in research and development and 20% in administration.
Sixteen sites across Europe will be affected. Four German manufacturing locations will close: Dortmund, Morbach, Berlin and Schwalbach.
Europe’s automotive downturn has left roughly 30% overcapacity, the presentation said, driven by a sustained drop in demand for combustion-engine vehicles and a slower-than-anticipated ramp-up of electric mobility.
The company also blamed uncompetitive personnel costs in Germany and an overly complex organization with too many management layers, saying both required self-help measures.
Schaeffler forecasts the restructuring will deliver lasting earnings gains of about €300 million ($336 million) a year from 2030, against one-off costs of roughly €480 million.
It also plans to trim management layers by up to 30%. Compensation and related benefits will be reduced through temporary solidarity contributions, from the executive board down to employees, in 2027 and 2028.
Alongside the restructuring news, Schaeffler posted third-quarter revenue of €5.81 billion, down 2% year-on-year on an FX-adjusted basis, pressured by weak automotive market conditions in China.
The group held its full-year 2026 sales guidance at €22.5 billion to €24.5 billion and projected an adjusted EBIT margin of 3.5% to 5.5%.
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