Schaeffler joins wave of German auto-sector job cuts

· Politics · Germany

Schaeffler's decision to cut 3,460 jobs and close five plants across Europe is the latest sign of strain in Germany's automotive sector, which CNBC described as an "industry crisis". German suppliers are squeezed between cheaper Chinese competitors, softer demand and heavy investment in electric and software-driven vehicles. The company is also pivoting into defence and robotics to find new growth. The cuts are politically sensitive in Europe's largest economy, where manufacturing job losses have become a central political issue.

Why it matters：Germany's auto supply chain is shrinking as competitiveness erodes, with knock-on effects for European industrial policy and the continent's broader growth outlook.

Key points

  • Schaeffler will cut 3,460 jobs and close five European plants.
  • Suppliers face Chinese cost competition and weak demand.
  • The company is pivoting into defence and robotics.

Sources (original reporting)

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