New Delhi, November 5: Schaeffler will reportedly lay off 4,700 employees across Europe, following a significant drop in its operating profit. The German auto parts manufacturer, which supplies components to the automotive industry, is facing difficult times as it deals with the impacts of a challenging economic environment. The company’s decision to implement these job cuts is a response to challenges in the European auto sector. 

As per a report of The Economic Times, Schaeffler, a leading German auto parts manufacturer, has announced plans to lay off its workforce by 4,700 positions across Europe. The decision comes after the company revealed a sharp decline in its operating profit, which has fallen by nearly 50%. The job cuts are expected to affect several regions within Europe, particularly in its key manufacturing plants. Alibaba Layoffs: E-Commerce Giant Lays Off Hundreds of Employees in China From Its Metaverse Division Amid Business Restructuring.

According to reports, the European auto industry is facing several challenges, including high production costs, the transition to electric vehicles, decreasing demand, and increasing competition from China. Germany is expected to experience the largest number of job cuts, with plans to lay off around 2,800 employees across ten different locations. Additionally, there will be job cuts in other parts of Europe, which will include the closure of two sites, although Schaeffler has not specified where these locations will be.

Reports also suggest that 1,000 employees will lose their jobs due to displacements, bringing the total number of layoffs to 3,700 workforce. It reportedly represents about 3.1 per cent of Schaeffler's workforce, which totals 1,20,000 employees. The number has grown following the company's merger with Vitesco, a specialist in electric powertrains. Bosch Layoffs: German Tech Conglomerate To Lay Off 7,000 Employees From ‘Automotive Supply Sector’ Amid Lower Returns on Sales Expected in 2024.

Additionally, Volkswagen, which is Europe's leading car manufacturer, is thinking about closing some of its factories in Germany. One of the reasons for this decision is that Germany has some of the highest labour and energy costs in Europe. Volkswagen is said to be in negotiations with trade unions regarding a proposed 10 per cent reduction in wages for workers.

(The above story first appeared on LatestLY on Nov 05, 2024 06:33 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).