Automotive supplier Schaeffler has announced another cost-cutting program that includes significant job losses. The company stated on Tuesday that 3,460 positions are to be cut in Europe, with plans to eventually close five locations. Of these, 2,660 jobs and four of the locations are in Germany.
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The affected facilities include the plants in Dortmund (430 employees), Morbach (160 employees), Berlin (270 employees), and Schwalbach (385 employees). Further “adjustments”—and in some cases the discontinuation of business activities—will affect several other locations, including those in Höchstadt, Erlangen, and Schweinfurt.
According to the company, it currently employs just under 32,000 people in Germany. The planned job cuts in the country will therefore affect approximately nine percent of the workforce and are scheduled to be completed by 2028. When combined with previous cost-cutting programs and the 1,800 partial-retirement agreements already signed, the total reduction amounts to 18 percent of the company’s workforce in Germany.
Outside of Germany, plans are in place to downsize sites in Haguenau and Toulouse (France), as well as in Skalica and Kysuce (Slovakia). The facility in Herstal, Belgium, which employs 15 people, will be closed.
Schaeffler points to “the persistently challenging environment in the automotive sector” and “weakened demand for vehicles with internal combustion engines.” Regarding electric vehicles, the company cites a “delayed ramp-up.” Furthermore, electric motors require significantly fewer components.
The company anticipates one-off costs of 480 million euros associated with the job cuts. From 2030 onwards, it expects to achieve annual savings of 300 million euros. Schaeffler stated that it remains “clearly committed to its German operations.” However, it noted that labor costs in Germany are above average and that the corporate structure is highly complex.
Author: AFP – pe/mt
Sources: AFP Press Portal