Structural measures to increase competitiveness
Schaeffler AG is planning structural measures to improve its competitiveness. According to its press release, the Herzogenaurach-based supplier is responding to the challenging market environment. Schaeffler also refers to the increasing intensity of global competition and the ongoing transformation, particularly in the automotive supply industry.
The measures adopted have a regional focus on Germany and Europe. According to Schaeffler, they comprise the following three lines of action: improving earnings at Bearings & Industrial Solutions, realizing synergies from the merger with Vitesco and capacity adjustments due to the ongoing transformation of the automotive supply industry.
Reduction of 4,700 jobs in Europe
The program of measures includes job cuts in Europe. Around 4,700 gross jobs are to be cut there. According to the company, around 2,800 of these jobs will be in Germany.
Ten locations in Germany are affected by the downsizing measures. There are also five other European locations. Two of them will even be closed.
With regard to the job cuts, Schaeffler writes that the majority of the measures are to be implemented between 2025 and 2027.
Savings potential of several million euros
According to its press release, Schaeffler anticipates annual savings potential of around 290 million euros as a result of the announced measures.
However, according to the company, the measures will result in one-off expenses of around 580 million euros. The sum is mainly made up of provisions and relocation costs.
Klaus Rosenfeld, CEO of Schaeffler AG, said: "With these structural measures, we are taking an important step to ensure Schaeffler's competitiveness. These measures are without alternative in the current market and competitive situation."