Schaeffler announces a Europe-wide restructuring that will cut a net 3,460 jobs, with about 2,660 cuts in Germany and closures or planned closures at five sites—Dortmund, Morbach, Berlin, Schwalbach, and Herstal in Belgium— impacting a total of 16 European locations.

The job cuts are designed to address overcapacity amid an industry slowdown, intensified competition, weaker demand for combustion-vehicle components, and the transition to electric mobility.

About half of the planned reductions affect production, roughly 30% affect research and development, and the cuts cover both combustion-engine parts and development roles.

Solidarity contributions are planned as a temporary, voluntary wage concession starting at the board level and extending across hierarchies, framed around social dialogue with works councils and referencing a 2018 Future Agreement.

The company faces a double squeeze: shrinking demand for internal-combustion engine components and weaker-than-expected orders for electric-vehicle components, despite the Vitesco acquisition that positioned it for e-axles and hybrid modules.

Schaeffler notes that components such as gears, actuators, sensors, and bearings make up about half of typical humanoid robotics material costs and is pursuing partnerships and customers in robotics to support growth during the restructuring.

CEO Klaus Rosenfeld says the plan aims to balance defense and offense by restructuring capacity to free resources for opportunities in robotics, defense, and AI-enabled automation.

Electrification is hampered by inconsistent subsidies and insufficient charging infrastructure in Europe, limiting e-mobility growth and reducing demand for traditional mechanical parts.

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The article frames the move as part of a broader crisis among auto parts suppliers, highlighting Schaeffler’s costly outlook for the future.

Automotive expert Stefan Bratzel warns the cuts could hurt future competitiveness if investments in new technologies like electric drivetrains, software, and AI are weakened.

Schaeffler attributes its challenges to higher German labor costs, too many management layers, weaker demand for combustion-engine components, and a slower-than-expected EV ramp-up.