Schaeffler cuts 3,460 jobs in Europe amid automotive restructuring
German auto supplier Schaeffler announced the elimination of 3,460 jobs in Europe, including 2,260 in Germany, and the closure of four sites. The restructuring, which costs approximately 480 million euros, follows a previous program and reflects the company's strategy to address high personnel costs.
German auto supplier Schaeffler announced the elimination of 3,460 jobs in Europe, including 2,260 in Germany. The company will close plants in Dortmund and Morbach, which produce parts for internal combustion engines, and development sites in Berlin and Schwalbach. The restructuring costs approximately 480 million euros initially, with projected annual savings of 30 million euros from 2030. This follows a previous program announced in November 2024 to cut 4,700 jobs, meaning nearly one-fifth of German positions have been removed across all programs. Schaeffler's stock fell over 5% and has halved in value from its peak following the announcement.
CEO Klaus Rosenfeld cited high personnel costs in Germany, which are nearly 2.5 times higher than in other European locations, as the core problem. The company is implementing a solidarity contribution where executives forgo 10% of pay for two years and non-union managers 5% for three years. Schaeffler has 400 million euros in orders for robot actuators, representing less than 2% of its 23 billion euro annual revenue. The company targets 3 billion euros in revenue from robotics, defense, and space by 2035. Jefferies maintains a buy recommendation with a target price of 8.70 euros.