A new curtain in the automotive crisis. Giant supplier lays off thousands of people

The contraction and increasing costs experienced in the European automotive industry directly affect the critical links of the supply chain.

Germany-based automotive and industrial parts manufacturer Schaeffler announced that it will lay off approximately 3,500 people and close five facilities across Europe, citing the deepening sector crisis.

The company, which has a wide range of products from ball bearings to electric vehicle components, is struggling with intense competition, especially from Chinese manufacturers.

In the statement made by the company, as quoted by the French AFP agency, it was stated that three-quarters of the total employment cut of 3,460 people and four of the five facilities planned to be closed will be located in Germany.

The reason for this decision was that employee costs in Germany, Europe's largest economy, were "above average".

The cuts, which are planned to be completed by 2028, correspond to approximately 3 percent of the group's total workforce of approximately 110 thousand people worldwide.

With these measures, the company aims to save approximately 300 million euros (16 billion 796 million 952 thousand Turkish Liras) annually starting from 2030.

In its statement, Schaeffler noted that the steps were "a response to the ongoing challenging conditions in the automotive industry."

In the statement, the following statements were made, pointing out the general decline in the market and the toughening competition:

"There is a general market contraction and an intensifying competitive environment, shaped by the weakening of demand for internal combustion engine vehicles and the delay in the transition to electric mobility."

It was reported that layoffs would be concentrated mainly in production and research and development units.

Within the scope of the plan, facilities located in the German cities of Berlin and Dortmund, as well as in two different settlements in the west of the country, will be closed.

In addition, the operations of a small-scale facility in Belgium will be terminated.

There will also be staff reductions in businesses in France and Slovakia.