The crisis in the automotive sector has led the German automotive components group, Schaeffler, to announce this Tuesday that it will eliminate 4,700 jobs in Europe, as well as close two facilities, due to difficulties in the sector.
In a statement, the company clarifies that this decision “is a response to the challenging market environment, the increase in global competition, and the ongoing transformation, particularly in the automotive supply industry”.
According to Schaeffler, of the 4,700 jobs to be cut, 2,800 are in Germany; however, the company still operates a factory in Portugal.
It is worth noting that Schaeffler recently merged with Vitesco, which increased the company’s workforce by about 35,000, bringing the total to approximately 120,000, according to the German group’s statement.
The announcement published on the German group’s website also adds that “the job cuts mainly affect 10 locations in Germany, but also five more sites in Europe, including two that will be closed”. The company will only disclose the affected locations and closures at the end of the year.
Schaeffler and other German automotive parts manufacturers have seen their sales decline recently due to the crisis in the automotive sector, which has forced VW, Mercedes-Benz, and BMW to rethink their transition to electric mobility. Moreover, VW, Schaeffler’s largest customer, recently announced that it is considering closing factories in Germany.
