1,300 Schaeffler jobs on the chopping block
The Board of Managing Directors of Schaeffler AG has decided on additional restructuring measures aimed primarily at boosting the competitiveness of its Automotive Technologies division.
These measures are to be largely implemented by the end of 2026.
“We are moving into an environment where being the technology leader is no longer enough. The critical factor now is to have in place the competitive cost structures needed to further accelerate the transformation process and ensure that Schaeffler is fully geared for powertrain electrification. And that in turn requires us to reduce our cost base and cut overcapacity", says Matthias Zink, CEO Automotive Technologies, in a press release.
The planned structural changes involve cutting a total of 1,300 positions, mainly in the Engine & Transmission Systems and Bearings business divisions within Automotive Technologies, and also in the company’s central functions.
Approximately three quarters of the capacity reduction will affect positions in administration and central functions in R&D for internal combustion engines, with the remaining quarter in production, the press release states.
Positions will be cut both in Germany and abroad
Within Germany, the locations affected are mainly Herzogenaurach, Bühl, and Homburg. One in four of the positions – around 300 jobs – lost will be at locations outside Germany.
“The measures decided on by the Board of Managing Directors mark an important step towards ensuring future growth. Their purpose is to further sustainably strengthen Schaeffler’s competitiveness and future-readiness and to enable us to safeguard jobs in Germany over the long term,” says Sascha Zaps, Regional CEO Europe.
These measures are expected to generate annual savings of up to EUR 100 million. The actions will generate transformation expenditures of about EUR 130 million, most of which are expected to be recognised as a provision in the financial statements for Q4 2022.