Bearing specialist, Schaeffler is cutting costs to help shelter it from the impact of weak demand for vehicles.
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“We are looking at everything,” a company source was quoted as saying in a local newspaper.
Around 60% of Schaeffler’s business comes from the automotive industry, so current production cuts by manufacturers such as BMW, Mercedes-Benz and Opel are taking their toll.
Chief executive Jürgen Geißinger told Handelsblatt that hourly workers would be laid off and investment cut.
In some cases, vehicle production is being cut by a third although there are still long waiting lists for some models such as the VW Tiguan small SUV, for example.
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By GlobalDataLike the vehicle manufacturers, Schaeffler has negotiated flexible work hours with its employees, which means it can shut down lines and send workers home when demand is low, and ask them to make up the time when production returns to normal, without having to pay overtime. In return, employees’ salaries remain secure.
