The automotive and industrial supplier Schaeffler is closing one plant in Austria and one in Great Britain as part of its job cuts. The company announced on Wednesday that bearing production in Berndorf, Austria, would be discontinued. The production of clutches in Sheffield, England, will also be discontinued and a location in Hungary will be taken over.
In Austria, Schaeffler employed around 466 people at the end of 2023. In total, the supplier has around 120,000 employees at more than 250 locations in 55 countries.
Fluctuating demand, strong competition
Schaeffler currently produces wheel bearings and wheel hub modules as well as transmission bearings in Berndorf. These are primarily used in heavy commercial vehicles. “These sectors are subject to strong fluctuations in demand as well as very high cost and price pressure due to the increasing competition from Asian manufacturers on the European market. Due to the comparatively small size of the location, these fluctuations are difficult or impossible to absorb in a reliable and economically sensible way,” said Schaeffler on Wednesday in a broadcast.
According to the German company, the affected “Bearings and Industrial Solutions” division is faced with ongoing economic weakness, structural problems and increased competition. The locations in Kysuce in Slovakia and Brasov in Romania were supposed to take over production capacity, but were also affected by staff cuts.
This will be implemented as socially acceptable as possible from 2025 to 2027. At the beginning of November, Schaeffler announced that it would cut 4,700 jobs across Europe due to weak business with industrial customers and in the electric car sector. Relocations would reduce net reductions in Europe to around 3,700.
