Schaeffler cutting Europe jobs in ‘challenging market’

Schaeffler has announced around 4,700 job losses in Europe as part of a reorganisation plan expected to realise potential annual savings of around €290 million (£242 million) by the end of 2029.

Asked whether the move will have any impact on supplies and services for the UK aftermarket, a Schaeffler spokesperson told Aftermarket yesterday the company was unable to provide any additional information beyond what had already been announced.

Schaeffler revealed on November 5 that around 2,800 of the total job losses will be mainly in Germany across 10 sites.

The rest of the job cuts will span five plants in Europe, including two unidentified site closures.

The company’s board said it had approved the structural measures, with a regional focus on Germany and Europe, aimed at securing a long-term increase in competitiveness.

‘Global competition’

“The decision comes in response to the challenging market environment, the increasing intensity of global competition, and ongoing transformation processes affecting the automotive supply industry,” the statement said.

Schaeffler said it needed to improve the earnings performance of its Bearings & Industrial Solutions division, which is “grappling with continuing economic weakness, structural problems, and increasingly intense competition”.

In addition, the company said it would realise synergies from the merger with Vitesco Technologies Group. These will mainly be in the form of revenue and purchasing synergies “but will also involve some workforce downsizing”.

A third aspect of the restructuring plan will be to respond to what Schaeffler said was the ongoing transformation in the automotive supply sector. 

“These include measures relating to the declining volume in ICE technology and the current weakening of new programmes for electric drives in Europe. The measures therefore affect both the company’s Powertrain & Chassis division and its E-Mobility division.”

Meanwhile, Schaeffler reported EBIT before special items for the first nine months of the year of €713 million, compared to €964 million in the same period last year. Revenue for the period was €12.23 billion (previously €12.27 billion).

Photo: Schaeffler location in Bühl, Germany.