Schaeffler targets over 3,000 job cuts and four German plant closures to offset falling ICE demand and a slow electric‑vehicle shift.
The German automotive supplier Schaeffler has unveiled a sweeping restructuring programme that will see roughly 3,460 employees across Europe lose their jobs. Of those, about 2,660 positions are slated for elimination inside Germany, while the remainder will be dispersed among facilities in Belgium, France and Slovakia.
The plan also calls for the permanent shutdown of four manufacturing sites located in Berlin, Dortmund, Morbach and Schwalbach.
Company officials describe the move as a response to a “persistently challenging environment” in the auto sector. Weak sales of internal-combustion-engine (ICE) vehicles, an unexpectedly slow ramp-up of electromobility, and rising competitive pressure—especially from Chinese producers—have forced the group to trim excess capacity, lower personnel costs and simplify its organisational hierarchy.
Scope of the restructuring and affected locations
The restructuring touches sixteen sites across the continent. In Germany, the closures will affect the Dortmund plant (approximately 430 workers), the Morbach facility (around 160 staff), the Berlin location (about 270 employees) and the Schwalbach site, where roughly 385 workers will be relocated to the nearby Frankfurt hub.
Outside Germany, Schaeffler will shutter a small production unit in Herstal, Belgium, while adjusting output at sites in France and Slovakia.
Job losses will be distributed across three functional groups: roughly half will occur in production, thirty percent in research and development, and the remaining twenty percent in supporting functions such as administration and logistics. The company estimates that the cuts represent around three percent of its global workforce of nearly 110,000 employees.
Financial targets and broader industry context
Schaeffer’s board projects annual cost reductions of about €300 million starting in 2030, offsetting one-off restructuring expenses estimated at €480 million. The firm also plans to streamline its management layers, removing at least two of the seven hierarchical levels beneath the executive board, and merging certain responsibilities to improve decision-making speed.
The cuts arrive on the heels of previous announced reductions—4,700 jobs in 2024—and come as other German automotive giants grapple with similar pressures. Volkswagen recently disclosed an additional 50,000 job cuts by 2030, while Bosch announced 13,000 reductions largely within its automotive division. The broader trend reflects declining demand for ICE components, elevated labour costs in Germany, and intensified competition from low-cost Asian suppliers.
Future-oriented projects and employee response
While the layoffs focus on traditional power-train and chassis parts, Schaeffler signals a pivot toward “future-oriented fields,” including humanoid robotics and defence technologies. Senior executives will also take temporary salary reductions as a “solidarity contribution” to demonstrate cost-discipline at all organisational levels.
The works council, representing the affected workforce, has called for dialogue with management, arguing that cuts alone will not restore the company’s health. Council head Uli Schoepplein demanded a clear, forward-looking strategy that outlines which product lines will be produced in Germany and how Schaeffler intends to compete in the evolving automotive landscape.
