Schaeffler to cut 4,700 employees in Europe amid 2024 profit decline

What’s going on at Schaeffler?

German automotive and industrial parts manufacturer Schaeffler has announced plans to lay off 4,700 employees across Europe following a 50% drop in operating profit in the third quarter. The decision underscores ongoing challenges in the European automotive sector, including the shift to electric vehicles, high production costs, and rising competition from China.

Details

• 2,800 positions will be cut across 10 sites in Germany.
• The remaining job cuts will span five European plants, including two site closures (locations not disclosed).
• 1,000 jobs will be reduced through displacements, resulting in net layoffs of 3,700 employees, or 3.1% of Schaeffler’s workforce.
• Schaeffler expects annual savings of €290 million by 2029 from these measures, incurring restructuring costs of approximately €580 million.

Official statements and context

• Executive Board’s Position: Schaeffler described the layoffs as part of an “efficiency plan” needed to remain competitive in a challenging market.
• Employee Response: Ulrich Schoepplein, head of Schaeffler’s works council, expressed disappointment: “We are upset by this news and urge the executive board to engage with employee representatives to explore alternatives that can secure jobs in the long term.”

Impact on Canadian staff

It remains unclear if the workforce reduction at Schaeffler will affect Canadian employees. The company has roughly 400 employees in the country.

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Next steps for Schaeffler employees

If you’ve been affected by the layoffs at Schaeffler, understanding your legal rights is crucial.

Non-unionized employees in Canada’s automotive sector are entitled to severance pay based on a variety of factors, including their role, tenure, age, and ability to find similar work.

Here’s what you need to know:

• Compensation: Severance packages, which can be as much as 24 months’ pay, may include salary, bonuses, commissions, and other forms of compensation. Use our firm’s free Severance Pay Calculator to better understand your entitlements.
• Deadlines: You generally have up to two years from the date of your termination to review and negotiate severance offers.
• Action steps: Consult an employment lawyer at Samfiru Tumarkin LLP to ensure your severance package is fair and aligns with Canadian employment laws.

Many companies cutting jobs

Schaeffler isn’t the only major employer trimming its headcount as 2024 draws to a close.

Other big names, including Cargill, Bosch, Vale, Windsor University, Rogers, General Motors, AMD, Visa, Meta, Nokia, and Deloitte, have also pulled out the axe.

SEE ALSO
• Salesforce to cut jobs at ‘Own’ following $2-billion acquisition
• Amazon Layoffs: Nearly 14,000 managers could be axed to cut costs
• Where are layoffs happening in Canada?
• Pocket Employment Lawyer: Real-time insights on your rights

Lost your job? Contact us

If you’re affected by the latest round of layoffs at Schaeffler, the experienced employment law team at Samfiru Tumarkin LLP can help.

Our lawyers in Ontario, Alberta, and British Columbia have helped tens of thousands of non-unionized individuals resolve their workplace issues.

Call us today at 1-855-821-5900 or request a consultation online.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is NOT specific to any one company and should NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.