Schaeffler is expanding its partial retirement programme in Germany as the automotive supplier looks to reduce headcount and lower costs at its domestic sites, with around 1,300 employees expected to take part.
The company’s board of managing directors approved the extension following what it described as “high” employee demand.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The partial retirement arrangements, negotiated with the Group Works Council, are designed to facilitate workforce reductions and strengthen the firm’s long-term competitive position.
Under the scheme, employees move through block models comprising active and passive employment phases, with participation requiring sign-off from both the staff member and their line manager.
Contract lengths vary by site and staffing needs, spanning from two years – split evenly between one active and one passive year – up to eight years, made up of four active and four passive years.
Schaeffler noted that the terms broadly mirror those introduced under the structural measures unveiled in November 2024.
That same month, it confirmed the closure of two manufacturing plants, in Austria and the UK, as part of its wider restructuring drive.
Schaeffler anticipates that around 20% of eligible employees – those born in or before 1971 – will take up the offer, amounting to approximately 1,300 staff across direct and indirect roles.
On this basis, the company projects a one-off charge of about €51m ($58.8m), booked as a special item in 2026, with cost savings expected to materialise from 2027 onward.
According to Schaeffler, the expanded scheme gives staff choice around a structured and predictable path into retirement, while also contributing to a longer-term shift in the company’s workforce age profile.
Schaeffler chief human resources officer Astrid Fontaine said: “In offering these partial retirement arrangements, we are responding to the high level of interest among our employees while creating flexible solutions that meet both individual needs and the requirements of our company.”
Separately, in June, Schaeffler and Sonatus announced a global partnership to integrate Edge AI into motion control systems for software-defined vehicles.
