Schaeffler cuts 3,460 jobs as BMW brings severance costs forward
On 3 November Schaeffler announced 3,460 job cuts in Europe and four plant closures in Germany; the same evening BMW cut its forecast because staff reductions are coming faster.
On a single day a large supplier and a Bavarian carmaker reported faster job cuts. The tools are new: Schaeffler is relying on a voluntary pay waiver from the board down, and BMW is pulling severance costs into the current year.
What happened
Schaeffler plans to cut a net 3,460 jobs in Europe by 2028, about 2,660 of them in Germany, spread across 16 sites. Dortmund, Morbach, Berlin and Schwalbach are to close, with Schwalbach's staff largely moving to Frankfurt, along with Herstal in Belgium. Half the jobs are in production and 30% in research and development. That is about 9% of the 31,957 staff in Germany, or around 18% including earlier programmes and 1,800 partial-retirement contracts. Costs are about €480m; the earnings improvement from 2030 is about €300m a year. On top comes a temporary, voluntary pay waiver starting with the board; its size is open. The e-mobility division posted an operating loss of €571m over nine months. BMW cut its margin forecast for the car business to between minus 0.5% and plus 0.5%, from 1-3%, its second warning this year. The cause is a severance scheme for most of its roughly 85,000 non-production staff in Germany: launched on 8 October and closed on 20 October because of high demand. It is part of up to 8,000 job cuts by the end of 2027, costing about €1bn, most of which now falls in the fourth quarter.
What follows
Severance, partial retirement and pay waivers avoid compulsory redundancies but cost the companies experienced people in administration and development. That BMW had to close its scheme after 12 days shows how many employees expect harder years. Regions such as Franconia, Dortmund and Berlin face fewer orders for service providers and less spending power. For banks and medium-sized firms in the supply chain, volumes and margins at large customers remain under pressure. Assessment: neither company cites AI as a reason, so neither case appears in the AI job tracker.
What changes in practice
- Employees
- At Schaeffler about 2,660 jobs in Germany are affected and four plants are to close. BMW's severance scheme has already closed.
- Managers
- Schaeffler plans a temporary, voluntary pay waiver from the board across all management levels; its size is open.
- Suppliers
- BMW expects a moderate fall in deliveries in 2026. Those supplying large carmakers plan for lower volumes.
- Regions
- Dortmund, Morbach, Berlin and Schwalbach lose Schaeffler plants; Franconia is hit several times over.
What to watch
- Number of severance agreements accepted, in BMW's results on 4 November
- Size and reach of Schaeffler's pay waiver once approved
- Response from IG Metall, the metalworkers' union, and works councils at affected sites
Sources
- Produktion: Schaeffler plant Stellenabbau und Werksschließungen in Deutschland
- Automobil Produktion: Schaeffler plant weiteren Stellenabbau und Werksschließungen
- Cash Online: BMW-Gewinnwarnung – eigenes Sparprogramm belastet die Jahresprognose
- Reuters via Investing.com: BMW cuts automotive outlook for second time as restructuring deepens
- ad-hoc-news: BMW senkt Gewinnprognose wegen Abfindungsprogramm deutlich