Schaeffler to cut jobs, close five plants in Europe as auto sector gloom deepens

Nov 3 (Reuters) - German auto supplier Schaeffler SHA0n.DE said on Tuesday it would cut 3,460 jobs and close five sites in Europe as it responds to weakened demand for combustion-engine cars, slower-than-expected adoption of electric vehicles and intense competition.

CEO Klaus Rosenfeld said the measures were intended to ensure Schaeffler could continue to manufacture and develop products competitively in Germany and Europe.

Schaeffler expects the measures to deliver annual savings of about €300 million ($336 million) by 2030, with one-off costs of roughly €480 million, most of which will be booked in 2026.

It said it planned to close four sites in Germany and one in Belgium, while job cuts would affect 16 of its sites.

The company added the cuts would involve about 2,660 jobs in Germany, its largest production site, or about 9% of its German core workforce by 2028.

Including previously announced restructuring measures and 1,800 partial-retirement agreements already signed, the reduction would amount to about 18% of its German workforce.

($1 = 0.8937 euros)