Schaeffler announces mass layoffs in Europe
According to Schaeffler, the layoff number corresponds to around 3.1 per cent of the total number of employees following the merger with Vitesco. Ten locations in Germany are affected by the redundancy measures. In addition, five further locations in Europe are affected, two of which are to be closed. Schaeffler intends to announce further information on these locations by the end of this year. The majority of the measures are to be implemented between 2025 and 2027.
In addition to the difficult situation in the automotive sector and weakness in Schaeffler’s industrial division, Vitesco’s integration is one of the reasons for the reorganisation. At Vitesco, the Regensburg and Herzogenauchrach sites are particularly affected, where around 300 jobs are to be cut in each case. There was an overhang in administration in particular following the merger. These three ‘strands of action’ – necessary improvements in earnings in the Bearings & Industrial Solutions division, synergies with Vitesco and the measures resulting from the ongoing transformation of the supplier industry – are intended to improve the company’s competitiveness.
As part of the integration, Schaeffler and Vitesco have agreed on synergies totalling 600 million euros per year, which are to be achieved in 2029 primarily through growth and economies of scale in purchasing – only a ‘subordinate part’ is to result in a reduction in personnel. Klaus Rosenfeld, CEO of Schaeffler, had already hinted at this in an interview a few weeks ago, but had not yet made any statements about the extent of the job cuts – although the Vitesco integration actually only makes up a small part of the overall measures.
Regensburg will be the future headquarters of the Powertrain Solutions division of Schaeffler’s Powertrain & Chassis division. Schaeffler’s new E-Mobility division will be based in Herzogenaurach, which will also remain the headquarters of the Group.
The company is only hinting at the exact measures contained in the third ‘strand of action’ relating to the transformation of the industry. At Powertrain & Chassis, for example, ‘further adjustments will be made to further reduce the cost base due to the drop in demand as a result of the continuing decline in the combustion engine business’. The Herzogenaurach, Schwalbach and Regensburg sites are particularly affected.
“By taking the measures announced today we will tackle three issues. Firstly, we will get our bearings and industrial business back on track. Secondly, we will realize cost synergies from the merger with Vitesco Technologies,” explained Schaeffler AG Chief Executive Officer Klaus Rosenfeld, adding: “And thirdly, we will continue the transformation of our Powertrain & Chassis and E-Mobility divisions. Given the current business environment, this program is necessary to safeguard the Schaeffler Group’s competitiveness over the long term.”
ZF made a similar statement in July, when the Friedrichshafen-based company announced that it would be cutting up to 14,000 jobs by 2028. The move was justified with a necessary increase in competitiveness and the “changes in the mobility sector and in particular in electromobility.” At both ZF and Schaeffler, however, takeovers have also led to the companies gaining locations and personnel – in times of competitive and cost pressure, the location structure is now being addressed.
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