Global automotive and industrial supplier Schaeffler announced that it plans to shut down some of its European locations – specially in Germany leading to 4,400 job cuts by 2022.
Twelve of the company’s German locations including Wuppertal, Eltmann and Clasthal-Zellerfeld and two other locations in other parts of Europe are expected to shut down while other facilities such as Herzogenaurach, Buhl, Schweinfurt, Langen and Hochstadt will be expanded for improved production capacity.
This move is aimed at recovering from the €353mn in net losses the company faced in H1 2020, caused by the COVID-19 related shudowns across the consuming industries. In comparison, the manufacturer made €273mn in net profits in the first six months of 2019. Schaeffler expects to save about €100mn annually until 2023 with this strategy. However, the cost of consolidation and simultaneous expansion has been estimated at €700mn.
(€1 = $1.18)