Schaeffler to close five factories in Europe

German automotive parts and machinery manufacturer Schaeffler AG is set to lay off another 3,460 employees and close five factories in Europe. According to Reuters, the move comes in response to weak demand for internal combustion engine vehicles, a slower-than-expected adoption of electric vehicles, and intense industry competition.

The company announced that it will close four plants in Germany and one in Belgium, with layoffs affecting 16 of its facilities in total. By 2028, approximately 2,660 employees will be laid off in Germany-the company's largest production hub-representing about 9% of its workforce in the country, Schaeffler stated.

"The announced measures are intended to help the company continue to manufacture and develop products competitively in Germany and Europe, despite significantly higher labor costs," said Schaeffler CEO Klaus Rosenfeld, noting: "Our personnel costs in Germany are approximately 2.5 times higher than in other European countries."

The staff reductions planned by Schaeffler reflect mounting pressure within Germany's automotive supply chain, as suppliers adapt to lower vehicle production volumes, a slower-than-anticipated growth in the electric vehicle market, and intensifying competition from Chinese rivals.

• Annual savings of 300 million euros by 2030

Schaeffler expects the announced measures to result in annual savings of approximately 300 million euros by 2030, with one-off costs estimated at around 480 million euros-the majority of which are set to be recorded in 2026.

Rosenfeld declined to rule out further job cuts beyond 2028, noting that Schaeffler must first negotiate and implement the current program before assessing whether additional measures are required.

As part of the restructuring, Schaeffler's management board will reduce its own remuneration by 10% over a two-year period, the CEO stated during a conference call with analysts.

"This is not just a signal to the works council and our employee representatives; it is also a way for us to contribute immediately to addressing a cost-related issue that needs to be tackled," Rosenfeld said.

• Schaeffler to pay dividends

Despite the restructuring, Klaus Rosenfeld reiterated Schaeffler's commitment to paying dividends and expressed confidence regarding cash generation in the fourth quarter. "We want to consistently pay dividends to all our shareholders, even during periods when restructuring is necessary," the company official said. Taking into account previous restructuring measures and retirement agreements already signed by the company, its workforce in Germany is set to decrease by approximately 18%. As of September 30, 2026, Schaeffler had 31,957 employees.

• Germany's largest trade union plans protests at over 2,000 locations

IG Metall, Germany's most powerful trade union, is intensifying protest actions within the metal and electrical industries, reports DPA, citing Agerpres.

On Monday, the union announced that it has called for thousands of workers to go on strike by the end of the week across more than 2,000 facilities nationwide.

A march is set to take place in the city center of Koblenz, in the west of the country. Employees will also stage protests at the Opel plant in Kaiserslautern, as well as at companies in the vicinity of Frankfurt, including Vitesco, Procter & Gamble, and Rolls-Royce.

In Kassel, protest actions are planned at Daimler Truck AG and Paul Beier GmbH.

The protests concern working conditions and pay for approximately 3.7 million employees covered by regional collective bargaining agreements in the metal and electrical sectors.

The actions will impact key industrial sectors, such as automotive, mechanical engineering, electronic components, and metal production. The union is demanding a 5% wage increase over the next 12 months, as well as job security.

Employers have criticized the protest actions, describing them as "inappropriate threats." They are offering a one-off payment next year and a 1.3% salary increase in July 2028.

The offer, which is below the inflation rate, is justified by the employers citing the difficult economic situation and cost pressures facing the German industrial sector.