Schaeffler to Cut 3,460 Jobs in Europe and Close 5 Sites in Profitability Drive
Key Facts
Schaeffler announced on November 3, 2026, a plan to cut a net 3,460 jobs in Europe, including about 2,660 in Germany, and close 5 sites, in measures the company said would be implemented mainly during 2027 and 2028. The move is part of a performance improvement program amid weak demand for vehicles with internal combustion engines and a slower-than-expected acceleration in electric mobility. Chief Executive Klaus Rosenfeld said the company believes it is "possible and economically viable to develop products and manufacture them in Germany and Europe competitively and cost-effectively over the long term." The cuts span 16 European sites and include jobs in production, research and development, and other areas. The company aims to reduce costs and improve annual earnings by about 300 million euros by 2030.
The 5 sites slated for closure are split between Germany and Belgium; the plan covers 4 sites in Germany and the Herstal production site in Belgium, which employs about 15 people. In Germany, the list includes the Dortmund plant, which employs 430 people, and the Morbach site, with 160 employees, as well as the cessation of operations in Berlin and the closure of the Schwalbach site. The Berlin site employs about 270 people, while the company did not specify the number of employees in Schwalbach in its statement. Schaeffler said about 385 employees associated with Berlin and Schwalbach are expected to see a large number of them transfer to its site in Frankfurt. It added that about 190 jobs will be affected by workforce reductions in Frankfurt.
The measures cover jobs in production, research and development, and other functions, according to the breakdown the company provided for the announced cuts. Schaeffler said about 50% of the affected jobs are in production, 30% in research and development, and 20% in other functional areas, with the cuts spanning 16 sites in the European region. In Germany, the planned job cuts amount to about 9% of the company's core workforce, which totaled 31,957 employees on September 30, 2026. The share rises to about 18% when job reductions resulting from previous programs and signed partial retirement agreements, numbering 1,800, are included. The company said implementation will take place mainly during 2027 and 2028, placing the bulk of the structural changes in those two years.
The company attributed the restructuring to a range of factors, including weak demand for cars equipped with internal combustion engines, slower growth in electric mobility, higher-than-usual employee costs in Germany, and regulatory complexity. Results for the first nine months of 2026 show a divergence between the group's performance and that of its Powertrain & Chassis division. Revenue at the division fell 4.6% on a constant-currency basis to 6,302 million euros, compared with 6,672 million in the same period of 2025. Schaeffler linked the decline to product portfolio streamlining and the continued contraction of the internal combustion engine market, particularly in Greater China and Europe. At group level, revenue fell to 17,481 million euros from 17,672 million, while earnings before interest and taxes and special items rose to 794 million euros from 746 million, and the margin improved to 4.5% from 4.2%.
Regional results reflect uneven pressures; Schaeffler's revenue in Greater China fell 7.9% on a constant-currency basis in the first nine months of 2026. In the same period, revenue declined 0.4% in Europe, while it rose 0.5% in the Americas and 7.3% in Asia-Pacific, according to company data. Schaeffler estimated one-off expenses related to the improvement program at about 480 million euros, and expected to record most of them as restructuring provisions during 2026. It also plans a temporary and voluntary wage reduction covering all management levels, with details to be determined later. The company said this contribution is expected to provide immediate support to the income statement in 2027 and 2028, and its results published on November 3 affirmed its 2026 outlook.