Schaeffler, the Franconian automotive and industrial supplier, is contemplating significant job cuts following its merger with Vitesco. This development comes on the heels of similar announcements in the automotive industry, signaling a trend of workforce reduction in the sector.
Klaus Rosenfeld, CEO of Schaeffler, hinted at potential job eliminations in an interview with “Wirtschaftswoche” magazine. He stated, “We don’t need two headquarters. We are also doubly staffed in certain functions. So we will have to cut selected positions.” This move is directly related to the upcoming merger with Vitesco, an electric drive specialist.
However, Rosenfeld assured that the scale of job cuts would not be as extensive as those announced by ZF, another automotive supplier based in Friedrichshafen, which plans to eliminate 14,000 positions. Neither Rosenfeld nor a company spokesperson provided more specific details when approached by the German Press Agency.
Schaeffler had previously announced that the merger with Vitesco is expected to yield annual savings of around 600 million euros, with the majority not coming from personnel cuts. Together, the two companies employ approximately 120,000 people.
Market conditions and future outlook
Rosenfeld also mentioned in the “Wirtschaftswoche” interview that additional cuts beyond those resulting from the Vitesco merger might be possible. He explained, “This also has to do with the fact that we are still examining what results from the current market environment, independently of the actual merger.”
Despite these challenges, Rosenfeld anticipates strong growth in the electromobility business of the merged company. He emphasized that the transformation to e-mobility “remains the right path.” Dismissing any notion of automakers moving away from electric vehicles, he stated, “I cannot see that our customers will develop completely new generations of combustion engines.”
In the industrial business, Rosenfeld expects lower profits. He noted, “In China, we have long earned a lot of money with bearings for wind turbines.” However, he acknowledged that the market is changing. While the competition is becoming tougher, Schaeffler does not plan to withdraw from China but must adapt to lower profit margins.
The potential job cuts at Schaeffler reflect the ongoing challenges and transformations in the automotive industry, particularly as companies navigate the shift towards electrification and adapt to changing market conditions.
