Schaeffler to cut 1300 jobs globally

The transition from combustion engine vehicles to EVs has caused these job cuts

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As the auto ancillary industry is facing challenges while shifting from combustion engines to electric vehicles, the German auto parts supplier, Schaeffler said in a statement that it will be cutting 1,300 jobs, internationally. That means, 1.6 per cent of the Company’s global workforce will have to be let go.

These fresh layoffs at Schaeffler will impact roles in the administration and central functions in research and development for internal combustion engines and some positions in the production side. As per the official statement, the switch to EVs had led to overcapacity of products for combustion engine vehicles while automakers continue to cut back on development programmes for combustion engine cars.

With these layoffs, the Company expects to save €100 million ($99.92 million) every year. The layoffs will cost the company €130 million.

The shift to EVs can cost further jobs in other auto components-manufacturing firms around the world. The European Parliament has voted for the ban of gross sale of petrol and diesel-run vehicles in Europe by 2035. In fact, the UK has stated that it may ban the sale of petrol and diesel-run vehicles by 2030, with some hybrid technologies still operational till 2035.

Other auto-component makers such as Continental and Bosch have warned that this shift to EVs will result in tens of thousands of job cuts in the future. Two years ago, Continental had expressed its intention to cut as many as 30,000 jobs due to the transition and dip in the demand for their products.

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