‘No More Job Cuts’ a Lie?

'No More Job Cuts' a Lie?

Schaeffler’s CEO Rules Out Further Job Cuts, for Now

The automotive supplier Schaeffler has not ruled out a further job cut, but the company’s CEO, Klaus Rosenfeld, emphasized that it is currently focusing on the program it has announced. “I cannot predict what will happen in three or four years, even with the best of will” Rosenfeld told the Süddeutsche Zeitung, commenting on the possibility of further job cuts.

At present, the company is cutting 4,700 jobs in Europe, of which 2,800 are in Germany. “I expect that 2025 will be a challenging year for the economy, for our industries, and for Schaeffler as a whole” Rosenfeld said. “And we won’t be counting on a rapid recovery afterwards.”

The coming years will remain challenging, Rosenfeld believes. “It would be irresponsible to put the company on autopilot now” he added. The business will likely move sideways in the coming years, rather than experiencing a significant upswing. The crisis also presents an opportunity, but the Chinese are building excellent electric vehicles, the CEO said, adding that he is convinced they will also succeed globally. The Chinese produce cars more efficiently and with less complexity, Rosenfeld noted, asking, “Why can’t we do the same?”

For the ailing industrial business of the group, the CEO called for self-criticism and a re-examination of certain aspects. However, a breakup of the company is not a topic of discussion, and Rosenfeld has ruled out a major takeover for the time being. “We have more debt than I would like, even if everything is still within the limits. Now, we need to focus on delivering” the CEO said.