Schaeffler reveals substantial workforce reductions
Schaeffler, another German automotive supplier, plans job cuts. CEO Klaus Rosenfeld hasn't disclosed the exact figure yet.
Following its rival ZF, Schaeffler, a prominent automotive and industrial supplier from Germany, has now declared significant layoffs. In the context of its upcoming merger with electric drive specialist Vitesco, some roles could become surplus, as per CEO Klaus Rosenfeld's statement to "Wirtschaftswoche". "We don't need two main offices. We're doubled up in certain functions. Therefore, we'll also have to trim down select positions," Rosenfeld shared with the newspaper.
However, this won't be on the same magnitude as ZF's declared layoffs of 14,000 jobs. ZF, based in Friedrichshafen, did not provide further details upon the German Press Agency's request. Previously, Schaeffler had highlighted that the merger with Vitesco would yield about 600 million euros in annual savings, mostly not from personnel.
Job reductions not solely due to merger with Vitesco
During his talk with "Wirtschaftswoche", Rosenfeld suggested that additional cuts might be necessary beyond the savings generated from the merger with Vitesco. "This is also related to our assessment of what follows from the current market scenario, apart from the actual merger," noted Rosenfeld.
Rosenfeld anticipates strong growth in the electric mobility segment of the combined firm and emphasized that the transition to e-mobility "remains the correct path". He sees no detour from car manufacturers shifting towards electric vehicles: "I can't envision that our customers will develop entirely new generations of internal combustion engines."
In terms of the industrial business, Rosenfeld foresees lower profits. "For years, we've made a lot of money from bearings for wind turbines in China," mentioned the Schaeffler CEO. "But the market is evolving, and competition is intensifying. This doesn't mean we'll exit China, but we'll have to manage with slimmer margins."
In discussing the upcoming merger with Vitesco, Schaeffler's CEO Klaus Rosenfeld mentioned that some roles might become surplus due to the overlapping functions. Other than the savings from the merger, Rosenfeld hinted at the necessity for additional job cuts due to the current market scenario.
