This is a new example of the difficulties of the automotive industry sector and equipment manufacturers, faced with cascading social plans: the German equipment manufacturer Schaeffler announced on Tuesday, November 5, the elimination of 4,700 jobs in Europe, as well as the closure of two sites.
“This is the company's response to the challenging market environment, increasing global competition and ongoing transformation, particularly in the automotive OEM industry”explained the group, a specialist in bearings for the automotive industry, in a press release.
The announcement comes a month after its merger with transmission manufacturer Vitesco, which Schaeffler had warned would lead to job cuts. This savings plan corresponds to 3% of the group's payroll, which has employed 120,000 people since the merger. It is expected to reduce costs by around 290 million euros per year by the end of 2029.
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Weakening sales
The new group, present in fifty-five countries, also plans to relocate part of its production, it announced on Tuesday. The workforce reductions will mainly affect ten sites in Germany and five others in Europe, between 2025 and 2027.
The automotive industry and equipment manufacturers sector is in the grip of a crisis, triggered by the decline in car sales – particularly in Europe and China, the main market for European manufacturers – and by the weakening of vehicle sales electric, the development of which required massive investments from manufacturers.
After the social plans of the largest equipment manufacturers Bosch, ZF and Continental, the Volkswagen group, Europe's number one automobile manufacturer, created a shock by announcing plans for massive job cuts in Germany at the beginning of September and threatening to close factories.
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