Herzogenaurach – Schaeffler is cutting around 1,300 additional jobs in Germany. The company is responding to weak automotive markets, high restructuring costs, and losses in its electric vehicle business. The E-Mobility division posted an adjusted loss of 402 million euros for the first half of the year. At the same time, net financial debt rose to 5.545 billion euros by the end of June. The phased retirement program entails initial costs of 51 million euros but is expected to generate savings starting in 2027.
Job cuts at Schaeffler complement ongoing cost-saving program
The offer is aimed at employees born in 1971 or earlier. However, Schaeffler anticipates that only around 20 percent of eligible employees will actually sign an agreement. This measure is intended to result in the early departure of approximately 1,300 employees from production, administration, and other areas. Furthermore, the agreement requires the consent of both the employee and the respective manager.
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Depending on the location, these schemes run for periods ranging from two to eight years, with an active employment phase followed by a release-from-duty phase of equal duration. Consequently, the scale of job cuts at Schaeffler is expanding beyond the restructuring program already approved. In November 2024, the group had announced the elimination of 4,700 jobs in Europe, including 2,800 in Germany.
Higher profit masks significant cash outflow
In the first half of 2026, group revenue fell by a nominal 1.5 percent to €11.667 billion. However, adjusted for currency effects, Schaeffler achieved slight growth of 0.4 percent. Adjusted operating profit also rose from €482 million to €549 million, with the corresponding margin improving from 4.1 percent to 4.7 percent.
Despite the higher operating profit, there was a significant net outflow of cash from the group. As a result, the free cash outflow increased from €128 million to €300 million. Restructuring and the integration of Vitesco alone resulted in cash outflows totaling €236 million. At the same time, the debt ratio (before special effects) rose from 2.1 to 2.4.
EV business remains deep in the red
The E-Mobility division increased its revenue by 7.7 percent—adjusted for currency effects—to 2.578 billion euros. Nevertheless, the unit posted an adjusted operating loss of 402 million euros. Consequently, Schaeffler’s job cuts are taking place at a time when its key future-oriented business segment continues to generate heavy losses. However, the margin did improve from minus 19.3 percent to minus 15.6 percent.
Schaeffler had already lowered its group targets for 2028 at the end of July. Instead of 27 to 29 billion euros, the company now expects revenue of only 24 to 26 billion euros. A further decisive factor was the cancellation or scaling back of electric vehicle programs in the US. According to CEO Klaus Rosenfeld, new business in robotics and defense is not yet making a significant contribution to earnings in the medium term.
Author: Blackout News
Sources: Manager Magazin (05.08.26) – Schaeffler (05.08.26)