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Finance

Schaeffler to cut jobs, close five plants in Europe as auto sector gloom deepens

Published by Global Banking & Finance Review

Posted on November 3, 2026

2 min read

· Last updated: November 3, 2026

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Schaeffler to Cut 3,460 Jobs and Close Five European Plants in Auto Sector Decline

Schaeffler Announces Major Restructuring Amid Automotive Industry Challenges

Nov 3 (Reuters) - German auto supplier Schaeffler said on Tuesday it would cut 3,460 jobs and close five sites in Europe as it responds to weakened demand for combustion-engine cars, slower-than-expected adoption of electric vehicles and intense competition.

CEO Statement and Strategic Objectives

CEO Klaus Rosenfeld said the measures were intended to ensure Schaeffler could continue to manufacture and develop products competitively in Germany and Europe.

Financial Impact of the Restructuring

Schaeffler expects the measures to deliver annual savings of about €300 million ($336 million) by 2030, with one-off costs of roughly €480 million, most of which will be booked in 2026.

Details of Site Closures and Job Cuts

It said it planned to close four sites in Germany and one in Belgium, while job cuts would affect 16 of its sites.

The company added the cuts would involve about 2,660 jobs in Germany, its largest production site, or about 9% of its German core workforce by 2028.

Including previously announced restructuring measures and 1,800 partial-retirement agreements already signed, the reduction would amount to about 18% of its German workforce.

Additional Information

($1 = 0.8937 euros)

(Reporting by Amir Orusov in Gdansk, editing by Milla Nissi-Prussak)

Key Takeaways

  • Net reduction of 3,460 positions across Europe, including ~2,660 in Germany (~9–8 % of core German workforce by 2028), rising to ~18 % when prior measures and partial retirements are included (schaeffler.com)
  • Closure of five sites—four in Germany (Dortmund, Morbach, Berlin, Schwalbach, and associated operations at other German locations) and one in Belgium (Herstal)—targeting overcapacity and streamlining production and R&D (schaeffler.com)
  • The performance improvement program is projected to yield annual savings of approx. €300 million from 2030, with upfront restructuring costs of about €480 million, primarily booked in 2026; includes a solidarity contribution via voluntary compensation reductions across all levels (schaeffler.com)

References

Frequently Asked Questions

How many jobs is Schaeffler cutting in Europe?
Schaeffler is cutting 3,460 jobs across 16 sites in Europe, with 2,660 of those in Germany.
Why is Schaeffler closing plants and cutting jobs?
The company is responding to weak demand for combustion-engine cars, slow electric vehicle adoption, and strong competition.
How many plants will Schaeffler close, and where?
Schaeffler will close five plants: four in Germany and one in Belgium.
What savings does Schaeffler expect from these measures?
Schaeffler expects annual savings of about €300 million by 2030, despite incurring one-off costs of €480 million.
How much of Schaeffler’s German workforce is affected?
About 9% of Schaeffler’s German core workforce will be affected by 2028, and including prior measures, the reduction will reach 18%.

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