Schaeffler Announces 4,700 Job Cuts Amid Struggling European Auto Sector

Job Reductions Reflect Broader Industry Challenges
Schaeffler AG, a leading German auto parts manufacturer, has announced plans to cut 4,700 jobs across Europe as part of a restructuring initiative to address declining automotive production and broader economic weaknesses. The decision highlights the ongoing difficulties facing the European automotive sector and its supply chain, with major job losses affecting both carmakers and their suppliers.

Job Cuts Primarily in Germany, Affected Sites Across Europe
The majority of the 4,700 job cuts will occur in Germany, with around 2,800 positions to be eliminated across 10 of Schaeffler’s facilities. Five additional sites in Europe will also be impacted, although some positions will be relocated, reducing the net job loss to 3,700, or roughly 3.1% of the company’s workforce. The restructuring is expected to be completed between 2025 and 2027, and is designed to help Schaeffler remain competitive in an increasingly challenging market. The company anticipates saving €290 million by the end of 2029 from these cost-cutting measures.

Financial Struggles and Plant Closures
This announcement comes as Schaeffler grapples with a significant drop in earnings, reporting a 45% decline in adjusted EBIT for Q3, bringing profits down to €187 million from the previous year. In response, Schaeffler will consolidate production and close or relocate two factories—one in Germany and another outside the country—by the end of the year. These closures reflect the company’s strategy to streamline operations and better align with market demand.

Industry-Wide Trends of Restructuring and Job Cuts
Schaeffler’s job cuts are part of a wider trend within the European automotive supply chain. Other major suppliers, such as Bosch and ZF Friedrichshafen, are also scaling back due to the sector’s ongoing struggles. Bosch has already cut its forecast and may reduce its workforce further, while ZF plans to eliminate up to 14,000 jobs in Germany by 2028. These moves signal that the challenges facing carmakers are reverberating across the entire supply network, from major manufacturers to smaller parts suppliers.

Conclusion: The European Automotive Sector Under Strain
The job cuts at Schaeffler reflect the pressures facing the broader European car industry. As both manufacturers and suppliers face declining demand and rising costs, further job reductions across the supply chain seem likely. Schaeffler’s restructuring plan aims to increase the company’s long-term competitiveness, but the economic uncertainty in the automotive sector continues to cast a shadow over the industry.