Schaeffler Job Cuts: 3,460 Roles Go as German Car Supplier Crisis Deepens

Schaeffler job cuts are the biggest story in German industry today. On 3 November 2026, the car parts maker said it will drop 3,460 jobs in Europe. It will also close four German plants. Germans reacted fast. Google Trends showed more than 20,000 searches for “autozulieferer schaeffler”, which means “car supplier Schaeffler”. The same day, the boss of rival Knorr-Bremse warned that Europe’s industry could be “gone in 15 years”. So what is really happening? We break down the numbers, the reasons, and the wider German car supplier crisis.

What Are the Schaeffler Job Cuts? The Key Numbers

Schaeffler announced the plan in Herzogenaurach, according to its own press release. The company will cut a net 3,460 positions in Europe. About 2,660 of them are in Germany. The plan touches 16 European sites, and five of them will close. Four of those five are in Germany. The fifth is Herstal in Belgium, which has about 15 employees.

Schaeffler also shared where the cuts will land:

• 50% of the affected jobs are in production.
• 30% are in research and development.
• 20% are in other functions.

Tech outlet heise calculates that about 1,000 development jobs will go. Schaeffler has not said which areas it will trim.

How big is the German share? Reuters reports that 2,660 jobs equal roughly 9% of Schaeffler’s core German workforce by 2028. That workforce counted 31,957 people on 30 September 2026. Add earlier programs and 1,800 phased-retirement deals, and the total reaches about 18%, CNBC reports.

Which German Plants Will Schaeffler Close?

The site list comes from the company and the dpa report on WEB.DE:

• Dortmund: The plant has 430 employees. It makes parts for combustion engines.
• Morbach: It has 160 employees and also serves combustion engines.
• Berlin: Schaeffler will end work at the site, which has about 270 employees.
• Schwalbach: The company will give up the site. Many of its roughly 385 staff should move to Frankfurt, and about 190 jobs go.

Toolmaking will also stop in Höchstadt. Other German sites, such as Erlangen, Bühl and Regensburg, face smaller changes. Abroad, plants in France and Slovakia will adjust capacity. Schaeffler will share local details at staff meetings.

Why Is Schaeffler Cutting Jobs Now?

The press release gives three main reasons. First, demand for combustion-engine vehicles is weak. Second, the rise of electric mobility is slower than planned. Third, costs per employee in Germany are above average, and the company has too many management levels.

CEO Klaus Rosenfeld told Reuters: “Our personnel costs in Germany are around 2.5 times higher than in other European countries.”

Weak Earnings Add Pressure

In the third quarter, revenue slipped 0.2% to €5.8 billion, CNBC reports. EBIT before special items, meaning earnings before interest and taxes without one-off items, fell 7.2% to €245 million.

The electric-mobility division still loses money. Over nine months, its margin improved from minus 17.8% to minus 14.8%, according to heise. The company also booked about €240 million in special charges.

What Will the Restructuring Cost and Save?

Schaeffler expects one-time costs of about €480 million, mostly in 2026. In return, it targets about €300 million in extra annual earnings from 2030. Most steps will happen in 2027 and 2028.

The board will also take a 10% pay cut over two years, Reuters reports. Rosenfeld says Schaeffler still wants to pay a dividend. However, he did not rule out more cuts after 2028. Heise notes that Schaeffler has not revealed the assumptions behind its savings target.

How Did Unions and Investors React to the Schaeffler Job Cuts?

The union IG Metall hit back hard. Its Schaeffler representative, Thomas Höhn, said, in our translation: “One cutting program now follows the next.” He added: “This is no blueprint for the future of Germany as an industrial location.” Schaeffler says it will act in a socially responsible way and talk with employee representatives.

Investors stayed calm. The Schaeffler share traded at times near €5.97 on Xetra on 3 November, finanzen.net reports. That is almost 30% lower than at the start of the year.

Knorr-Bremse Boss Warns: “We Are Gone in 15 Years”

At the same time, Knorr-Bremse CEO Marc Llistosella gave a stark warning. He told Politico’s “Industrie & Handel” newsletter: “If we go on like this, we are gone in 15 years.” WELT reports the quote, and the translation is ours. Merkur covered the same interview.

Knorr-Bremse is a world leader in brake systems for trucks and trains. It has about 30,000 staff and roughly €8 billion in sales. His main points:

• Tariffs: He rejects blanket tariffs on China. He wants only very specific ones.
• Talent gap: Germany has about 132,000 engineering graduates a year. China has 1.3 to 1.5 million.
• Rules for Chinese firms: EV subsidies should require 80% local content, including the battery.

He wants Germany to start with an honest review of where it stands. He also expects Europe’s truck market to change massively within three to five years.

Beyond the Schaeffler Job Cuts: A Wider German Car Supplier Crisis

Schaeffler is not alone. Merkur lists more bad news. Bosch will cut about 900 of 1,800 jobs in Nuremberg. Webasto is selling its battery business after cutting 2,000 jobs, and it carries €1.5 billion of debt. Meanwhile, Continental, ZF, Valeo and Forvia want binding European rules for Chinese carmakers.

Carmakers also struggle. CNBC says EU new-car registrations fell from 15.3 million in 2019 to 10.8 million in 2025. It adds that Volkswagen is pursuing a huge overhaul with about 100,000 job cuts. A BILD summary says tens of thousands of jobs are gone and hundreds of thousands are at risk. The full report sits behind a paywall.

Rico Luman, an ING economist, told CNBC the industry faces an “unprecedented transition which can’t be stopped”. He says Chinese brands are gaining ground in electric cars.

We have tracked this trend for months. See our earlier reports on Volkswagen’s 100,000 job cuts and BMW’s 8,000 job cuts. Our look at Germany’s 1.4% growth in 2026 shows the wider economic backdrop.

Schaeffler’s Plan B: Defense, Robotics and Automation

Schaeffler says it will not only shrink. Rosenfeld told CNBC that Europe must play “defense and offense at the same time”. The company set up a defense unit at the end of 2025. It also sees chances in robotics, automation and AI. Read our earlier piece on Schaeffler’s pivot to defense. Luman warns, though, that these markets need fewer production workers.

What to Watch After the Schaeffler Job Cuts

Talks with works councils will shape the final plan. Investors will also watch fourth-quarter cash flow, which Rosenfeld says he feels confident about. Any EU decision on Chinese carmakers could also matter for suppliers such as Knorr-Bremse and Continental. No one can say how this will play out.

Conclusion: What the Schaeffler Job Cuts Tell Us

The Schaeffler job cuts show how fast Germany’s car supplier crisis is spreading. Weak combustion-engine demand, slow EV growth and high labor costs are squeezing suppliers at once. The warning from Knorr-Bremse’s chief adds a bigger question about Europe’s industrial future. We will keep following the story as talks with unions begin.

FAQs

How many jobs do the Schaeffler job cuts remove?

Schaeffler plans to cut a net 3,460 positions in Europe. About 2,660 of them are in Germany. Most will go by 2028, according to the company.

Which German plants will Schaeffler close?

Schaeffler plans to close its plants in Dortmund and Morbach. It will also end operations in Berlin and give up the Schwalbach site. A fifth closure, in Herstal, Belgium, is outside Germany.

Why is Schaeffler cutting jobs?

It blames weak combustion-engine demand and slow electric-car growth. It also cites high German pay costs and too many management levels.

When will the Schaeffler job cuts take effect, and what will they save?

Schaeffler plans to carry out most measures in 2027 and 2028. It expects about €300 million in extra annual earnings from 2030. One-time costs are about €480 million.

What did the Knorr-Bremse CEO say about Germany’s industry?

Marc Llistosella told a Politico newsletter that Europe’s industry will be gone in 15 years if it goes on like this. He wants an honest review and targeted tariffs on China.

Did Schaeffler shares fall after the announcement?

On 3 November, the stock traded near €5.97 on Xetra and was roughly flat at times. It is down almost 30% since the start of the year. That is not a forecast.

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