Schaeffler plans to cut 3,460 jobs in Europe and close 4 plants — Der Spiegel

German automotive components manufacturer and industrial supplier Schaeffler has announced a new cost-cutting program that envisages cutting 3,460 jobs in Europe, including 2,660 in Germany. The company also plans to close four plants in the country, Der Spiegel reports.

The planned cuts in Germany amount to around 9% of the group's nearly 32,000 employees in the country. Taking into account previously approved programs, Schaeffler intends to cut approximately 18% of its jobs in Germany.

Closure of four plants

The company plans to close facilities in Dortmund, which employs 430 people, and in Morbach in the state of Rhineland-Palatinate, which has 160 employees. Both plants manufacture products for internal combustion engines.

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Schaeffler also plans to close sites in Berlin and Schwalbach near Frankfurt am Main. In Berlin, 270 jobs are to be eliminated. Most of the approximately 385 employees at the Schwalbach plant are planned to be transferred to a Schaeffler facility in Frankfurt.

Restructuring and wages

The group intends to reorganize and partially reduce production in Höchstadt, Erlangen, Schweinfurt, Herzogenaurach, Bühl, Nuremberg and Regensburg. In addition, the employees who remain are expected to voluntarily forgo part of their wages over the next two years. The company said that without such a “solidarity contribution,” the cuts would be even more extensive.

Schaeffler expects these measures to improve its annual financial result by €300 million from 2030. Chief Executive Officer Klaus Rosenfeld estimated the one-off costs of the cost-cutting program at around €480 million. The group explained the new decisions by the automotive crisis in Europe, which requires further structural changes.