German supplier Schaeffler AG said on 3 November 2026 it will reduce a net 3,460 positions across Europe as part of a new performance‑improvement programme aimed at cutting overcapacity and lowering personnel costs. The company said the measures are mainly scheduled for implementation in 2027 and 2028 and are expected to yield about €300 million in annual earnings improvement from 2030, with one‑off costs of roughly €480 million.
Details of the programme
Schaeffler said approximately 50% of the positions affected are in production, 30% in research and development and 20% in other functional areas. The cuts will touch 16 European locations; the plan includes closing five sites (four in Germany and one in Belgium) and making capacity and structural adjustments at several others, explicitly naming Skalica and Kysuce in Slovakia among the locations where production and development capacities will be adjusted.
The company spelled out that about 2,660 of the job reductions will fall in Germany by 2028 — equivalent to roughly 8–9% of its core German workforce — and that, when combined with earlier measures and partial‑retirement agreements, the total reduction in Germany could reach about 18%. Schaeffler said the board will also implement a solidarity contribution across all hierarchical levels, including a temporary, voluntary compensation reduction, to reduce the scale of required job cuts.
What this means for the market
The move underlines growing pressure on Europe’s automotive supplier sector as demand for internal‑combustion powertrain components weakens and the shift to electric vehicles proceeds unevenly. Schaeffler framed the action as a way to keep manufacturing and development competitive in Europe despite higher labour costs: CEO Klaus Rosenfeld said the measures are intended to ensure the company can “develop and manufacture in Germany and Europe in a way that is competitive and cost‑efficient over the long term.” Reuters also quoted Rosenfeld noting that Schaeffler’s personnel costs in Germany are about 2.5 times higher than in other European countries.
