Schaeffler to Cut Nearly 3,500 Jobs, Close Five European Plants: Report

German automotive supplier Schaeffler will eliminate 3,460 jobs and close five of its manufacturing sites in Europe, in response to weakening demand for combustion engine vehicles, slower electric vehicle adoption, and increased market competition, according to a report by Reuters.

The restructuring measures will impact 16 locations across the region, including the closure of four plants in Germany and one in Belgium. Approximately 2,660 positions will be cut in Germany by 2028, representing nearly 9 percent of the company's core workforce in its home country.

Explaining the structural cost pressures driving the decision, Schaeffler Chief Executive Officer Klaus Rosenfeld said, "Our personnel costs in Germany are around 2.5 times higher than in other European countries."

The job cuts reflect broader pressures across the European automotive supply chain, where component manufacturers face reduced vehicle production volumes, delayed EV growth, and increasing competition from Chinese automakers. German carmakers including Volkswagen, Mercedes-Benz, and Porsche have also initiated cost-cutting initiatives to preserve operating margins in a contracting market.

Schaeffler expects the restructuring program to generate annual cost savings of approximately 300 million euros ($336 million) by 2030. The restructuring will incur one-off implementation charges of roughly 480 million euros, with the majority of the expenses scheduled to be booked in 2026.

Rosenfeld noted that the measures are intended to maintain product development and manufacturing competitiveness in Germany and Europe despite elevated labor costs, while declining to rule out further structural adjustments beyond 2028.