Germany’s automotive suppliers have long been the backbone of Europe’s manufacturing strength. But as automakers cut orders, the fallout is reshaping the industry. Schaeffler, a major automotive and industrial supplier listed on Germany’s MDax index, has announced a major restructuring plan that reflects the severity of the automotive crisis gripping the continent.
The impact of Schaeffler’s restructuring will be felt across Germany and Europe. The company plans to eliminate 3,460 jobs across Europe, with 2,660 of those cuts in Germany. Five locations will close, four of them in Germany: Dortmund, Morbach, Berlin, and Schwalbach. In Dortmund, a plant with 430 workers will shut down. Morbach’s facility, employing 160 people, will also close. In Berlin, where 270 employees work, and in Schwalbach, home to 385 workers, significant job reductions are planned, with many relocating to Frankfurt. Toolmaking operations in Höchstadt will be discontinued, and specialized machine manufacturing in Erlangen and Schweinfurt will undergo major adjustments.
The restructuring will affect various functions across the company. Schaeffler attributes the drastic measures to the automotive crisis, citing overcapacity, high development costs, and rising personnel expenses. The company aims to reduce annual costs by 300 million euros by 2030, though the restructuring will incur one-time expenses of approximately 480 million euros.
The company aims to reduce annual costs by 300 million euros by 2030, though the restructuring will incur one-time expenses of approximately 480 million euros.
Unions and works councils have condemned the layoffs, arguing that constant downsizing weakens Germany’s industrial future. Thomas Höhn, an IG Metall representative, criticized the rapid succession of restructuring programs. "At Schaeffler, one downsizing program follows another before the consequences of the previous one are managed. This is not a sustainable future concept for Germany’s industrial base," Höhn stated.
Despite the criticism, Schaeffler’s management insists the measures are necessary to ensure long-term competitiveness. The company’s latest moves come after previous job reductions and financial adjustments, reflecting the ongoing pressure on the automotive sector. With the industry still under strain, Schaeffler’s restructuring underscores the challenges facing Europe’s manufacturing industry.