Schaeffler to Cut 3,460 Jobs, Close Five Sites Across Europe

German automotive supplier to close five European sites, including four in Germany, as Chinese competition, high production costs and weakening demand intensify pressure on the industry.

November 3, 2026 at 2:35 PM
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FRANKFURT: German automotive parts supplier Schaeffler announced plans on Tuesday to cut 3,460 jobs and close five sites across Europe by 2028, as mounting challenges continue to deepen the crisis in the country’s car industry.

The company said in a statement that three-quarters of the job cuts and four of the five closures would be in Germany, citing above-average labour costs in Europe’s largest economy.

The planned reductions represent around three per cent of Schaeffler’s global workforce of nearly 110,000 employees. The company expects the restructuring to generate annual savings of approximately €300 million ($336 million) from 2030.

Schaeffler said the measures were a response to the persistently challenging conditions in the automotive industry, including an overall market downturn and intensifying competition.

It also pointed to weakening demand for vehicles powered by internal combustion engines and a slower-than-expected transition to electric mobility. The job cuts will mainly affect production and research and development operations.

The closures will affect sites in Berlin, Dortmund and two other towns in western Germany, as well as a smaller facility in Belgium. The company also plans job reductions at its facilities in France and Slovakia.

However, Schaeffler said some of the job losses would be offset by creating new positions in emerging sectors, including humanoid robotics and defence.

READ ALSO: Germany Moves to Avert Volkswagen Plant Closure

Although less prominent than major carmakers such as Volkswagen, BMW and Mercedes-Benz, German automotive suppliers play a vital role in the country’s industrial ecosystem, producing components ranging from braking systems and ball bearings to electric vehicle parts and in-car electronics.

The sector has come under growing pressure as its major customers struggle with competition from Chinese manufacturers, high domestic production costs and weakening market demand. Volkswagen, Germany’s largest carmaker, is planning to cut around 120,000 jobs across its brands by 2030.

Meanwhile, industrial giant Bosch, the world’s largest automotive supplier, announced 13,000 job cuts last year, mainly affecting its automotive division.

The latest announcement highlights the mounting difficulties facing Germany’s automotive industry as it struggles to remain competitive amid the global shift towards electric mobility and growing pressure from Chinese rivals.

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