Schaeffler to cut nearly 3,500 jobs and shut down five plants in Europe
Tier one supplier Schaeffler has announced additional measures as part of its latest performance improvement programme that will see the company eliminate 3,460 positions across Europe and close five sites in the region.
Schaeffler has said structural adjustments are required in response to an "automotive industry crisis" in Europe
Schaefller
Schaeffler will reduce its workforce in Europe by a net total of 3,460 positions as part of a broader company restructuring aimed at reducing overcapacity, adjusting development capacity, lowering personnel costs and reducing organisational complexity.
This latest performance improvement programme follows the completion of earlier restructuring measures announced in November 2024 and the conclusion of 1,800 partial retirement agreements in October this year.
In a statement, Schaeffler said that this decision has been made in response to the "persistently challenging environment in the automotive industry" which it said has been characterised by "weakened demand for internal combustion engine vehicles and a delayed ramp-up of electric mobility" amid an overall downturn in the market and intensifying competition.
Furthermore, it cited the complexity of the organisation as another issue, pointed towards issues such as "too many management levels and overly limited delegation of leadership responsibilities", with Schaeffler's CEO saying the company intends reduce hierarchical levels in an effort to further streamline the organisation.
Workforce reductions and plant closures in Germany
German-based positions account for approximately 2,660 of the total 3,460 positions set to be eliminated in this restructuring. Schaeffler noted that the aforementioned challenges have been compounded in Germany by the "above-average costs per employee" in the country.
The cost reduction plans also include the closure of five of Schaeffler's European sites – four of which are in Germany.
Amongst the German sites destined for closure are Schaeffler's Dortmund and Morbach plants, which belong to the company's Powertrain & Chassis division and manufacture products for internal combustion engines. The site in Dortmund currently has around 270 employees, while the Morbach site employs around 160 people.
The remaining two locations that will close in Germany are Schaeffler's sites in Berlin – employing around 270 people – and Schwalbach – with an workforce comprising of approximately 115 employees. However, Schaeffler has said that "a large portion" of the roughly 385 employees at its Berlin and Schwalbach locations are expected to transfer to the company's site in Frankfurt, resulting in a combined loss of around 190 jobs at the two plants.
As well as the closure of these four sites in Germany, Schaeffler has alluded to other adjustments at its locations around the country, including to to discontinue toolmaking operations in Höchstadt, make adjustments to special machinery manufacturing in Erlangen and Schweinfurt and make capacity and structural adjustments at sites such as Herzogenaurach, Bühl, Höchstadt, Nürnberg and Regensburg.
Overall, the planned reduction of 2,660 positions in Germany represents approximately 8% of Schaeffler's 31,957-strong core workforce in Germany as of September 30, 2026. When combined with job reductions from previous restructuring programmes and the partial-retirement agreements already signed, the company puts the cumulative reduction at approximately 18% of its German workforce by 2028.
According to Schaeffler's board of managing directors, this programme reaffirms the company's commitment to Germany as a business location.
“With the performance improvement programme announced today, we want to demonstrate that, despite the challenging operating environment, it is both possible and sensible to develop and manufacture in Germany and Europe in a way that is competitive and cost-efficient over the long term," said Schaefller CEO Klaus Rosenfeld.
He added that consolidating locations, bundling technological expertise in selected regional clusters and optimising costs per employee, in his view, are measures required to achieve these goals.
Impacts outside of Germany
Elsewhere in Europe, Schaeffler plans to adjust production and development capacities at its Haguenau and Toulouse locations in France, as well as at its Skalica and Kysuce sites in Slovakia. It has also said it will close its Herstal production site in Belgium, which currently has around 15 employees.
In total, 16 locations across Europe are set to be affected by job cuts, including the aforementioned sites in Germany.
Expected savings and expenses from the programme
Schaeffler has said that it expects to generate annual savings totalling approximately €300 million ($336m) by 2030 as a result of the implementation of its performance improvement programme. However, it estimates the programme to incur roughly €480 million in one-off costs, most of which recognised will be recognised as restructuring provisions as early as 2026.
Developing growth opportunities
According to Schaeffler's COO, Dr Jochen Schröder, the company expects at least a portion of the job reduction be offset by the creation of new positions in growth areas, including in sectors beyond automotive.
"In addition to our focus on further developing our core business, the Schaeffler Group has promising growth opportunities in future-oriented fields, particularly in the areas of humanoid robotics and defence," he said. "Here, we can draw on the technological expertise we have developed in our core business."
Schaeffler noted that its performance improvement programme aligns with the company's broader strategic direction to advance its position in the motion technology space and tap into new business areas.
“Based on our strategic goal of becoming the leading Motion Technology Company, we view the Schaeffler Group’s broad cross-sector diversification as an important opportunity,” added Rosenfeld. "We will do everything in our power to tap into new growth areas and, as far as possible, replace declining activities with new business."
Automotive Logistics' take
Schaeffler has confirmed that roughly half of the planned workforce reductions will affect production roles, with around 30% affecting research and development (R&D) positions. The remaining 20% of job reductions will come from other functional areas, which the company has not yet specified.
As such, it is not yet clear whether logistics and supply chain roles will be amongst those at risk of reduction. However, comments made by Dr Nadine Kiratli-Schneider, Schaeffler's head of supply chain risk management and sustainability, at ALSC Europe 2026 offer some insight into how the company views the contribution of these functions to wider business performance.
Speaking at the event in March, Dr Kiratli-Schneider described how the company had been working to demonstrate the wider financial contribution of its logistics function.
Rather than treating transportation solely as a cost centre focused primarily on securing lower freight rates, Schaeffler had taken a broader view, considering how logistics decisions affect working capital, inventory levels and lead times. Dr Kiratli-Schneider also highlighted the importance of aligning performance measures across functions, so that purchasing and logistics decisions take account of wider business priorities rather than focusing on individual cost or service targets.
She described how closer cooperation between Schaeffler's regional transport operations, central teams and external logistics partners had helped the company identify and respond to disruption earlier. This included working with partners to reroute shipments and maintain lead times, with the potential to reduce the need for costly measures such as air freight.
The workforce reductions announced by Schaeffler reflect the challenging market conditions facing the supplier as it seeks to improve its competitiveness and reduce costs. The impact of these headwinds has been felt not just by Schaeffler and other tier suppliers, but by OEMs as well. Volkswagen, for example, has outlined plans for a further workforce adjustment that would see the elimination of approximately 50,000 positions throughout the group by 2030.
