GERMAN automotive parts manufacturer Schaeffler announced that by 2026 it will eliminate a total of 1,300 jobs, mostly in its home country of Germany. Schaeffler will cut approximately 1,000 jobs in Germany, explaining that it wants to get rid of excess capacity and reduce fixed costs, especially in the automotive technologies division.

Jobs will be cut mainly in administration and in the research and development department for internal combustion engines, but a smaller number will also be eliminated in plants. In Germany, jobs will mainly be cut at the plants in Herzogenaurach, Bühl and Homburg. At Schaeffler, they expect the layoffs to save them around 100 million euros annually.

In the previous restructuring round in 2020, the company had already laid off 4,400 workers and currently employs almost 83 thousand people worldwide. In the current environment, “it is no longer enough to be just a technological leader,” said automotive technologies division director Matthias Zink, it is crucial that Schaeffler has a “competitive cost structure”.

This will enable the company to further accelerate the transformation process and to be fully ready for the electrification of the axle assembly, Zink explained. The measures are “an important step toward ensuring growth in the future,” asserted regional chief executive for Europe Sascha Zaps.

Source: index.hr