German auto supplier Schaeffler plans a net reduction of 3,460 jobs across Europe to address excess capacity, with closures and cuts concentrated in its German automotive operations.
The company said about 2,660 positions would be cut in Germany and 800 elsewhere in Europe. The German reduction represents about 9% of Schaeffler’s core workforce there as of Sept. 30, 2026. About half of the European reductions are planned in production, 30% in research and development and 20% in other functions.
Schaeffler plans to close four German sites — Dortmund, Morbach, Berlin and Schwalbach — as well as a plant in Herstal, Belgium. The program will affect 16 European locations. Many employees at Schwalbach are expected to transfer to Frankfurt; Schaeffler says about 190 positions are affected by the reduction.
The company cited weaker demand for vehicles with combustion engines, slower growth in electric-vehicle production and high personnel costs in Germany. Its presentation put excess capacity in Europe’s automotive sector at about 30% and also pointed to organizational complexity and multiple management layers. Schaeffler plans to reduce management layers by as much as 30%.
The supplier expects the program to add about €300 million ($336 million) to annual earnings beginning in 2030. It estimates one-time restructuring costs of about €480 million. Most measures are scheduled for 2027 and 2028, and the company plans to discuss temporary, voluntary compensation reductions with employee representatives during that period.
The program follows restructuring Schaeffler announced in November 2024. The company says it will present details for individual sites at local staff meetings; it has not provided meeting dates.
