The German automotive supplier Schaeffler announced on Tuesday the elimination of 4,700 jobs in Europe as well as the closure of two sites, a new example of the sector's difficulties.
“This is the company's response to the challenging market environment, increasing global competition and ongoing transformation, particularly in the automotive supplier industry,” the group explained in a statement. , specialist in bearings for the automotive industry.
The group will relocate part of its production
This announcement also comes a month after its merger with equipment manufacturer Vitesco, a transmission manufacturer, 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.
The new group, present in 55 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 sector in the midst of a crisis
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 sales of electric vehicles, 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, number 1 in Europe among automobile manufacturers, created a shock by announcing in early September plans for massive job cuts in Germany and threatening to close factories.
