German auto supplier Schaeffler to cut 3,460 jobs in Europe amid automotive crisis - Anadolu Ajansı

German automotive and industrial supplier Schaeffler announced plans on Tuesday to cut approximately 3,460 jobs across Europe to address overcapacity and sluggish electric vehicle demand.

The job cuts form part of a performance improvement program targeting a net reduction of around 2,660 positions in Germany and 800 across the rest of Europe, mostly by 2028, the company said in an earnings presentation.

The workforce reductions will impact production functions by about 50%, research and development by roughly 30% and administrative roles by 20%.

Schaeffler said 16 sites across Europe will be affected, including the closure of four manufacturing locations in Germany: Dortmund, Morbach, Berlin and Schwalbach.

The automotive crisis in Europe has created approximately 30% overcapacity due to a continued decline in demand for internal combustion engine vehicles and a slower-than-expected ramp-up in electric mobility, according to the presentation.

The supplier noted that uncompetitive personnel costs in Germany and organizational complexity with too many management layers also necessitated self-help measures.

Schaeffler expects the restructuring program to generate sustainable earnings improvements of about €300 million ($336 million) per year starting in 2030, against one-off restructuring costs of approximately €480 million.

The company also announced plans to cut management layers by up to 30% while reducing compensation and related benefits under temporary solidarity contributions from the executive board down to employees in 2027 and 2028.

Alongside the job cuts, Schaeffler reported third-quarter revenue of €5.81 billion, down 2% year-on-year on an FX-adjusted basis, weighed down by weak automotive market conditions in China.

The group maintained its full-year 2026 sales guidance of €22.5 billion to €24.5 billion and projected an adjusted EBIT margin between 3.5% and 5.5%.