This is a new example of the difficulties of the automotive sector and equipment manufacturers, in the face of cascading social plans: the German equipment manufacturer Schaeffler announced on Tuesday, November 5, the elimination of 4,700 jobs in Europe, as well as the closure of two sites.
“This is the company’s response to the challenging market environment, increasing global competition and continued transformation, particularly in the automotive OEM industry”The group, a specialist in bearings for the automotive industry, explained in a statement.
The announcement comes a month after its merger with transmission maker Vitesco, which Schaeffler had warned would lead to job cuts. This savings plan corresponds to 3% of the group’s payroll, which has employed 120,000 people since the merger. It is expected to reduce costs by around €290 million per year until the end of 2029.
Weakening sales
The new group, present in fifty-five countries, also plans to relocate part of its production, it announced on Tuesday. The workforce reductions will mainly affect ten plants in Germany and another five in Europe, between 2025 and 2027.
The automobile industry and equipment manufacturers sector is in the midst of a crisis, caused by the decline in automobile sales – especially in Europe and China, the main markets for European manufacturers – and by the weakening of sales. of electric vehicles, the development of which required massive investments from manufacturers.
After the social plans of the largest equipment manufacturers Bosch, ZF and Continental, the Volkswagen group, Europe’s largest automobile manufacturer, caused a stir by announcing plans for massive job cuts in Germany in early September and threatening to close factories.
