Schaeffler AG has announced a new performance improvement program to address the ongoing crisis in the European automotive industry. The program aims to reduce overcapacity, lower personnel costs, and decrease organizational complexity, with a net reduction of 3,460 positions in Europe, including approximately 2,660 in Germany. This move underscores the severe challenges facing the automotive sector, including weakened demand for internal combustion engine vehicles and a delayed ramp-up of electric mobility.
The job cuts will affect 16 locations across Europe, with approximately 50 percent in production, 30 percent in research and development, and 20 percent in other functional areas. Four plants in Germany will be closed: Dortmund (430 employees), Morbach (160 employees), Berlin (about 270 employees), and Schwalbach. The Schwalbach closure will involve transferring a large portion of its 385 employees to the Schaeffler site in Frankfurt. Additionally, toolmaking operations at Höchstadt will be discontinued, and adjustments will be made to special machinery manufacturing at Erlangen and Schweinfurt. Further capacity and structural adjustments are planned at other German sites, including Herzogenaurach, Bühl, Nürnberg, and Regensburg. Outside Germany, adjustments are planned in France (Haguenau and Toulouse), Slovakia (Skalica and Kysuce), and the closure of the Herstal site in Belgium.
These cuts represent about eight percent of the core workforce in Germany, which stood at 31,957 as of September 30, 2026. When combined with previous programs and 1,800 partial-retirement agreements, the reduction reaches approximately 18 percent by 2028. The program also includes a solidarity contribution across all hierarchical levels, starting with the Board of Managing Directors, which may involve a temporary, voluntary compensation reduction. This is expected to lower costs per employee and reduce the need for further job cuts.
Schaeffler reaffirmed its commitment to Germany as a business location. CEO Klaus Rosenfeld stated, “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.” The company expects annual earnings improvements of approximately 300 million euros starting in 2030, with one-time expenses of about 480 million euros, mostly recognized as restructuring provisions in 2026. Implementation is scheduled primarily for 2027 and 2028, in close dialogue with employee representatives.
The program aligns with Schaeffler’s strategy to become a leading Motion Technology Company, with diversification into new growth areas such as humanoid robotics and defense viewed as opportunities to offset job reductions. The company emphasizes socially responsible implementation, building on its 2018 Future Accord. For further details, see the original release.
