In brief

• Schaeffler plans to cut 3,460 jobs in Europe, of which 2,660 in Germany.
• The company will close five plants in Europe, four of them in Germany.
• The reason is weakening demand for parts for combustion-engine cars.

Scale of the cuts

The company announced that it will reduce 3,460 positions at its European plants. Around 2,660 of these positions are in Germany, and the rest in other European countries (La alemana Schaeffler anuncia el recorte de 3.460 empleos y el cierre de cuatro plantas en el país – EL PAÍS) (Výrobce autodílů Schaeffler plánuje propouštění, Čech se to zatím nedotkne – Seznam Zprávy). According to information provided by the group, the layoffs are linked to weaker demand in the automotive industry (Удар по автопрому. Поставщик запчастей для Porsche и Mercedes-Benz уволит более 3 тысяч сотрудников – NV).

Plants being closed

Schaeffler will close five plants in Europe. Four of them are located in Germany (In der Krise: Kahlschlag bei Autozulieferer Schaeffler – FAZ.NET) (Kahlschlag bei Schaeffler: Stellenabbau und Standortschließungen – tagesschau.de). The fifth is a factory outside Germany, whose location is not given in the cited reports (Výrobce autodílů Schaeffler zavře v Evropě pět závodů – Novinky.cz).

Why the company is cutting costs

The reason for the decision is weakening demand for parts for cars with combustion engines. The company is implementing a cost-saving program, and management also wants employees to agree to pay cuts (Gigant zwolni tysiące pracowników. Cztery zakłady w Niemczech zostaną zamknięte – Business Insider Polska). At the same time, IG Metall union representatives are demanding higher wages.

Numbers at a glance

| Category | Number of jobs | |---|---| | Germany | 2660 | | Other European countries | 800 | | Total in Europe | 3460 |

Context for the industry

Schaeffler's cuts come at a time of difficulties for the German automotive industry, where major carmakers such as Volkswagen are also announcing reductions. The company also operates in the Czech Republic, including in Svitavy, Lanškroun and Trutnov. It has not been reported whether plants there will be affected by the cuts.

What comes next

Specific dates for closures and layoffs were not given in the materials. The decision on wages remains a subject of talks with employee representatives.