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.

ADDITIONAL RESOURCES
• Can I be fired after a bad performance review in Ontario?
• What Albertans need to do if they’re fired after a bad performance review
• Fired after a bad performance review in B.C.: Employee rights

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