Schaeffler announces gross loss of 4,700 jobs in Europe, including closure of two locations

The Board of Managing Directors of Schaeffler AG has agreed on structural measures with a regional focus on Germany and Europe aimed at securing a long-term increase in the company’s competitiveness. 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 structural measures envisage a gross loss of about 4,700 jobs, some 2,800 of which will be in Germany. Production relocations will reduce the net loss to about 3,700 jobs, which corresponds to about 3.1 percent of the total post-merger headcount. The merger in October 2024 increased the company’s headcount by around 35,000 to approximately 120,000.

The downsizing measures will affect 10 locations in Germany. Five locations elsewhere in Europe are affected as well, including two that are set to be closed. Further information regarding these locations will be announced by the end of the year. The company intends to implement most of the measures over the period from 2025 to 2027.

The structural measures offer potential savings of about 290 million euros annually starting in 2029. About 75 million euros of these savings will come from cost synergies from the merger with Vitesco. These cost synergies are part of the target effect of 600 million euros per year disclosed when the merger transaction was announced. The implementation of the measures announced today will require a one-time expenditure of about 580 million euros largely consisting of provisions and relocation costs.

Schaeffler AG Chief Executive Officer Klaus Rosenfeld: “By taking the measures announced today we will tackle three issues. Firstly, we will get our bearings and industrial business back on track. Secondly, we will realize cost synergies from the merger with Vitesco Technologies. And thirdly, we will continue the transformation of our Powertrain & Chassis and E-Mobility divisions. Given the current business environment, this program is necessary to safeguard the Schaeffler Group’s competitiveness over the long term. We will implement it in a socially equitable and carefully considered manner.”