Structural measures to increase competitiveness
The Schaeffler AG plant structural measures to improve Competitiveness. According to its press release, the Herzogenaurach-based supplier company is reacting to the challenging market environment. Schaeffler also refers to the increasing global intensity of competition as well as the ongoing Transformation especially in the automotive supply industry.
The measures decided upon have a regional focus on Germany and Europe. According to Schaeffler, they encompass the following three action areas: earnings improvement in Bearings & Industrial Solutions, realisation of synergies from the merger with Vitesco, and capacity adjustments due to the ongoing transformation of the automotive supplier industry.
Cutting 4,700 jobs in Europe
The package of measures includes job cuts in Europe. Around 4,700 jobs are to be cut there gross. Of these, approximately 2,800 jobs will be in Germany, according to the company.
Ten sites in Germany are affected by the decommissioning measures. In addition, there are five other European sites. Two of these will even be closed.
Regarding the job cuts, Schaeffler writes that the implementation of the measures will predominantly take place between 2025 and 2027.
Savings potential of several million euros
According to its press release, Schaeffler anticipates an annual savings potential of approximately €290 million from the announced measures.
However, according to the company's statement, the measures will result in a one-off expense of around 580 million euros. The sum is mainly composed of provisions and relocation costs.
Klaus Rosenfeld, Chairman of the Executive Board of Schaeffler AG, said: „With the structural measures, we are taking an important step to secure Schaeffler's competitiveness. The measures mentioned are unavoidable given the current market and competitive situation.“