Schaeffler AG has announced a further performance improvement program aimed at reducing overcapacity, adjusting development capacity, lowering personnel costs, and reducing organizational complexity. The decision follows the completion of restructuring measures announced in November 2024 and the conclusion of 1,800 partial retirement agreements in early October. The program responds to the persistently challenging environment in the automotive industry, characterized by weakened demand for internal combustion engine vehicles, a delayed ramp-up of electric mobility, and intensifying competition, according to a company release distributed via NEWMEDIAWIRE.
As part of the program, a net total of 3,460 positions are to be reduced in the Europe region. Approximately 50 percent of the affected positions are in production, 30 percent in research and development, and 20 percent in other functional areas. The cuts will affect 16 locations in Europe. The plans include the closure of five sites, four of them in Germany. These include the plant in Dortmund, which currently employs 430 people, and the Morbach site with 160 employees; both belong to the Powertrain & Chassis division and manufacture products for internal combustion engines. In addition, operations at the Berlin site, which employs about 270 people, are planned to be discontinued, and the Schwalbach site is slated for closure. A large portion of these approximately 385 employees is expected to transfer to the Schaeffler site in Frankfurt. In total, around 190 positions will be affected by the reduction. Toolmaking operations at the Höchstadt site are also planned to be discontinued, with adjustments to special machinery manufacturing at the Erlangen and Schweinfurt sites. Capacity and structural adjustments are planned at other German locations, including Herzogenaurach, Bühl, Höchstadt, Nürnberg, and Regensburg. Outside Germany, production and development capacities at the French locations in Haguenau and Toulouse, as well as at the locations in Skalica and Kysuce in Slovakia, are to be adjusted. The Herstal production site in Belgium, with approximately 15 employees, will be closed.
The planned reduction of 2,660 positions in Germany means that, relative to the core workforce of 31,957 employees as of September 30, 2026, approximately eight percent of existing positions will be reduced by 2028. When taking into account job reductions from legacy programs and the 1,800 partial-retirement agreements already signed, the percentage increases to approximately 18 percent. The job cuts will be supplemented by a solidarity contribution that is intended to include, among other measures, a temporary, voluntary compensation reduction – still to be worked out in detail – starting with the Board of Managing Directors and extending across all hierarchical levels. The solidarity contribution aims to lower costs per employee, thereby reducing the necessary job cuts and associated one-time expenses. It is expected to provide immediate relief to the income statement in 2027 and 2028. Without the solidarity contribution, the job cuts would have been even more extensive.
Klaus Rosenfeld, Chief Executive Officer of Schaeffler AG, said: “With the performance improvement program announced today, we want to demonstrate that, despite the challenging operating environment, it is both possible and sensible to develop and manufacture in Germany and Europe in a way that is competitive and cost-efficient over the long term. This requires that we consolidate locations, bundle technological expertise in selected regional clusters, and optimize costs per employee. At the same time, we intend to further streamline the organization and reduce hierarchical levels. The most important element of the program – also in comparison to previous programs – is the solidarity contribution.”
The program is expected to generate savings of approximately 300 million euros per year by 2030. One-time expenses are expected to amount to approximately 480 million euros, with the majority to be recognized as restructuring provisions as early as 2026. The measures are to be implemented in a socially responsible manner and in close dialogue with employee representatives and works councils, based on the Future Accord concluded in 2018. Implementation is primarily scheduled for 2027 and 2028. The company will continue to pursue its “Motion Technology Company” strategy, with cross-sector diversification and new growth areas such as humanoid robotics and defense viewed as opportunities to offset declining activities. The full release is available on www.newmediawire.com.
