Schaeffler Announces 4,700 Job Cuts Amid Shift to EVs and Weak Demand in Europe

In response to evolving market dynamics and increasing demand for electric vehicle (EV) components, German auto parts manufacturer Schaeffler announced plans to cut 4,700 jobs across Europe. This decision reflects the company’s need to address overcapacity in its production lines tied to internal combustion engine parts and adapt to a shifting automotive landscape prioritizing EV technology.

1. Market Challenges: Schaeffler faces a challenging environment, with weak demand across multiple sectors in Europe. This has created excess production capacity, prompting the company to adjust its workforce and streamline operations.

2. Structural Adjustments: The company plans to consolidate specific activities and realign production, especially in its Bearings & Industrial Solutions division. The changes will affect facilities in Germany, particularly at the Schweinfurt and Homburg sites, and may involve relocations of some operations to improve competitiveness.

3. Social Measures: Schaeffler emphasized a socially responsible approach, including voluntary exit programs and part-time retirement options, as part of its commitment to employee welfare through its “Future Accord” agreement with unions.

4. Future Investments: Despite the job cuts, Schaeffler remains committed to training and reskilling its workforce, with an increased focus on technologies critical to EV production.