German Car Woes Worsen With Schaeffler Cutting 4,400 Jobs
- Supplier will close or sell several plants in its home country
- Merkel facing mounting pressure to provide more state aid
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Schaeffler AG will cut 4,400 jobs and close or sell several German plants as the automotive supplier joins peers in reeling from the coronavirus pandemic.
Most of the reductions will take place at a dozen facilities in Germany and two sites elsewhere in Europe, the maker of engine, transmission and chassis components said in a statement Wednesday. Factories in Wuppertal, Eltmann and Clasthal-Zellerfeld will be shut or shopped to other companies, with the cuts expected to save Schaeffler as much as 300 million euros ($355 million) a year. The company will take a one-time charge of 700 million euros for the restructuring.