VW supplier Schaeffler to cut 3,400 jobs, close 5 sites

Schaeffler AG is set to close five sites in Europe, targeting another round of job cuts as the Volkswagen AG supplier shrinks high-cost operations in Germany. The firm will eliminate 3,460 jobs in Europe, some three quarters of those in Germany, the maker of ball bearings and hybrid-electric drivetrains said Nov. 3. Four sites will shutter in its home country with one more in Belgium. The shares declined as much as 4.5%, bringing losses this year to nearly 30%, after the manufacturer also reported third-quarter earnings that missed expectations. Schaeffler, which supplies General Motors Co. and BMW AG among others, said it’s responding to the downturn in the auto market and intensifying competition, led by much weaker demand for fuel-burning cars, as well as the delayed ramp-up of electric mobility. The company also said it needs to reduce jobs in Germany, where costs per employee are about 2½ times higher than elsewhere in Europe. European auto suppliers are under mounting pressure from weak vehicle demand, rising Chinese competition and a slower-than-expected transition to electric vehicles. CEO Klaus Rosenfeld said conditions for Germany’s auto industry had worsened significantly since Schaeffler announced its previous restructuring program in 2024. Production volumes are falling more sharply than expected. “We need to adjust our structures here so that we can continue to operate competitively in the future,” Rosenfeld said in an interview. “Hoping for things to improve isn’t enough, we have to actively address the problems, and one of them is the significantly higher personnel costs we have here.” Germany’s auto industry is shedding tens…

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