The restructuring will affect 16 locations across Germany, Belgium, France and Slovakia, with implementation planned through 2028. Germany will bear the largest impact, accounting for approximately 2,660 job cuts, or 77% of the total reductions. Combined with earlier restructuring programmes and 1,800 partial-retirement agreements, Schaeffler expects its core German workforce to shrink by approximately 18%.

The planned closures include four German facilities in Dortmund (430 employees), Morbach (160), Berlin (270) and Schwalbach (385), alongside the company’s small Belgian site in Herstal (15 employees). Most employees at Schwalbach are expected to transfer to Frankfurt. Additional capacity reductions and operational adjustments are planned at facilities in Erlangen, Schweinfurt, Herzogenaurach, Bühl, Nuremberg, Regensburg and Höchstadt, as well as locations in France and Slovakia.

Production and research and development will be particularly affected, representing approximately 50% and 30% of the planned workforce reductions, respectively.

The restructuring comes amid mounting pressure on Europe’s automotive supply chain, driven by declining demand for combustion-engine components, slower-than-expected electric vehicle adoption and growing competition from Chinese manufacturers.

Schaeffler CEO Klaus Rosenfeld emphasized that the measures are necessary to maintain the company’s long-term competitiveness. He highlighted Germany’s high labour costs, which are approximately 2.5 times higher than in other European countries.

Schaeffler expects the restructuring to generate annual savings of approximately €300 million by 2030, while one-off costs are estimated at €480 million, with most expenses expected to be recorded in 2026. As part of the programme, the company’s executive board will voluntarily reduce its remuneration by 10% over two years.

Beyond cost reductions, Schaeffler aims to strengthen its position in future-oriented sectors, including defense, robotics and automation, while adapting its manufacturing footprint to changing market requirements.

The announcement reflects broader challenges facing Europe’s automotive, bearing and power transmission industries, as manufacturers seek to balance operational efficiency, technological transformation and global competitiveness.

Despite the restructuring, Schaeffler reaffirmed its commitment to maintaining shareholder dividends and expressed confidence in its fourth-quarter cash generation.