German automotive and industrial parts maker Schaeffler has announced plans to reduce 4,700 jobs across Europe, mainly in Germany. The decision follows a sharp drop in third-quarter profits, which were affected by low demand in the automotive and wind turbine sectors.

Facing industry-wide challenges such as high production costs, the shift to electric vehicles, and competitive pressures from Asia, Schaeffler’s workforce cuts aim to increase efficiency. Around 2,800 roles in Germany and further reductions across five European sites will bring net layoffs to 3,700. The company expects the restructuring to save around 290 million euros annually by 2029, though initial costs are estimated at 580 million euros.

Employee representatives have expressed disappointment, urging discussions to explore alternative solutions that might save jobs.

Schaeffler’s industrial unit has been particularly impacted by weak demand for wind energy and factory robots. To streamline operations, Schaeffler plans to sell its Melior Motion robotics business and consolidate other operations at its Schweinfurt facility.

The Layoffs 2024 trend extends beyond Schaeffler, with Bosch, another major German industrial player, planning to lay off 7,000 employees in Germany. Despite reporting €92 billion in revenue for 2023, CEO Stefan Hartung has acknowledged that Bosch is struggling to meet its financial goals and warned of potential further staffing reductions.