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Auto supplier cuts thousands of jobs

Deforestation at Schaeffler: The automotive supplier is cutting more than 4,000 additional jobs in Germany and Europe – including at the headquarters in Herzogenaurach. The Wuppertal site could close completely.

The automotive and industrial supplier Schaeffler wants to cut 4,400 more jobs in Germany and Europe by the end of 2022 due to the crisis in the automotive industry. Twelve locations in Germany are essentially affected – including the headquarters in Herzogenaurach, Franconia – and two more in other European countries, Schaeffler announced on Wednesday in Herzogenaurach. A complete closure is no longer ruled out for the Wuppertal location.

Schaeffler hopes that the package of measures will generate savings potential of 250 to 300 million euros annually, 90 percent of which should be realized in 2023. This is offset by transformation costs of 700 million euros.

Schaeffler has been reducing capacities for years

Schaeffler, one of the largest German suppliers, especially for the ailing automotive industry, had already reduced its capacities in recent years. A year ago, the company launched a volunteer program that is currently still being implemented and aimed at shedding almost 2,000 jobs. Since the end of 2018, the number of employees in the Schaeffler Group has decreased by a total of around 8,250 to around 84,000.

“Despite an upturn in demand in all three sectors and four regions in the last few months, the uncertainty about the further course of the pandemic and the resulting deterioration in the economic situation remains high,” the statement said. CEO Klaus Rosenfeld recently emphasized that Schaeffler had been relatively well managed through the Corona crisis so far.

The news from Herzogenaurach only comes for one day after a “car summit” at which the federal government and industry took measures to strengthen the ailing automotive industry and its suppliers had advised in Germany. The situation of the suppliers is considered particularly precarious. The Schaeffler competitor Continental recently announced major staff cuts.

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