Job cuts at auto supplier
Schaeffler announces 4,700 job cuts
Another hard blow for the automotive industry in Germany: the supplier Schaeffler, one of the ten largest companies in the industry worldwide, has to reduce staff.
One month after its merger with Vitesco, the automotive and industrial supplier Schaeffler announced that it would cut 4,700 jobs in Europe, including 2,800 in Germany. This corresponds to around 3.1 percent of the total workforce.
Ten locations in Germany and five more in Europe were affected, the company, which employs 120,000 people worldwide after the merger, announced at its headquarters in Herzogenaurach, Franconia. Two of the five European locations are to be closed completely. The package of measures will be implemented between 2025 and 2027. From 2029 onwards, 290 million euros will be saved per year. 75 million euros of this would be related to the merger with Vitesco.
“The program is necessary in the current environment in order to secure the Schaeffler Group’s long-term competitiveness. We will implement it in a socially responsible manner and with a sense of proportion,” said Schaeffler CEO Klaus Rosenfeld.
In the first nine months, Schaeffler – still without Vitesco – did comparatively well economically. Sales rose by one percent after adjusting for currency effects to 12.233 billion euros. The car division also rose by 0.2 percent after adjusting for currency effects – primarily due to further incoming orders in e-mobility. Before special items, interest and taxes, there was a profit of 713 million euros for the first nine months, after 964 million euros in the same period of the previous year.
dpa
Source: Stern
