Schaeffler Cuts 3,460 Jobs and Shuts Five European Plants
· Automobile · Reuters, Wall Street Journal, CNBC
Schaeffler, the German automotive supplier, announced plans to cut 3,460 jobs and close five European manufacturing plants due to a significant decline in auto sales across its key markets. The company cited a prolonged auto slump as the primary driver for the restructuring, affecting facilities in Germany, France, Spain, Italy and the United Kingdom. The job reductions represent a major workforce reduction for the supplier, which serves major carmakers including Volkswagen, Mercedes-Benz and BMW. Schaeffler stated it will provide support to affected employees and aims to complete the plant closures by the end of 2025. The moves reflect tightening margins and overcapacity in the European auto sector as demand weakens amid economic uncertainty. The company has not disclosed specific severance packages or the exact timeline for plant shutdowns beyond the 2025 target.
Why it matters
The job cuts and plant closures will directly impact thousands of European auto workers and suppliers, signaling deeper weakness in the continent's automotive industry which could ripple into related sectors like steel and logistics.
Read the original report — Reuters
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