Schaeffler, an automotive and industrial supplier, announced significant job cuts on November 5, 2024, with 4,700 positions eliminated across Europe, including around 2,800 in Germany.

This restructuring is part of a broader strategy aimed at achieving annual savings of 290 million euros by 2029, with 75 million euros specifically linked to the recent acquisition of Vitesco.

The company is also scaling back its combustion technology business and facing challenges in its electric vehicle sector, which has not grown as expected amid intense competition.

Industry leaders attribute the crisis not only to specific challenges within the automotive sector but also to broader political factors, particularly climate policies that impact competitiveness.

Carola Rühl, chairwoman of the works council, expressed disbelief over the job cuts, emphasizing the workforce's optimism following the merger with Vitesco and vowing to fight for every job.

FDP politician Lukas Köhler has called for the immediate repeal of the EU's ban on combustion engines, arguing that it pressures manufacturers and suppliers to comply with stringent climate measures.

Hildegard Müller, president of the VDA, noted that the challenges facing the automotive sector reflect broader issues affecting Germany's competitiveness, including high energy costs and bureaucratic burdens.

The IG Metall union has voiced strong opposition to the job cuts, warning that they could further weaken competitiveness and calling for discussions with Schaeffler's management.

The high operational costs in Germany are a primary reason for the layoffs, raising concerns about the country's competitiveness in the automotive supply chain.

While specific factories targeted for layoffs have not been disclosed, Schaeffler plans to provide more information by the end of the year.

Schaeffler's CEO, Klaus Rosenfeld, stated that there are no alternatives to the job cuts, citing slow progress in electric mobility transformation and competition from Chinese suppliers.

Dr. Astrid Fontaine, Schaeffler's HR director, assured that the job reductions would be handled socially and with care, primarily through natural attrition and voluntary programs.