Schaeffler to Cut 1,300 Jobs in Germany, Accelerating Shift Toward Non-Automotive Markets

German automotive parts giant Schaeffler announced it will cut approximately 1,300 jobs in Germany through an expanded phased retirement program — representing 1.2% of its global workforce. The move aims to address persistently weak demand in the automotive industry, particularly long-term pressure stemming from slower-than-expected growth in the electric vehicle market.

The company disclosed on August 5 that the early retirement program is expected to incur a one-time expense of around €51 million (approximately $59 million), with related costs recognized in fiscal year 2026; savings will begin materializing gradually starting in 2027. "We expect to see initial positive effects as early as 2027 — but this is not a quick-fix solution," CEO Klaus Rosenfeld emphasized in an interview, noting the full adjustment cycle will span four years.

Despite facing structural challenges, Schaeffler reaffirmed its full-year 2026 financial guidance. Adjusted EBIT for Q2 reached €264 million, up year-on-year, supported by its diversified business portfolio and progress in emerging growth areas including robotics, defense, and aerospace. Operating margin for the quarter remained stable at 4.5%.

Notably, while revenue from its e-Mobility division rose in the first half of the year, the unit remains unprofitable. Impacted by continued lower-than-expected demand for battery-electric vehicles, Schaeffler lowered its 2028 sales target on July 31 and explicitly stated that expansion into non-automotive sectors — including industrial robotics, defense equipment, and aerospace systems — has become a strategic priority to reduce reliance on traditional automotive markets.