Schaeffler to Cut 2,800 Jobs in Germany
Automaker and industrial supplier Schaeffler is cutting 2,800 jobs in Germany.
The company said the cuts are necessary to improve its competitiveness. The cuts will affect all areas of the company's operations, including research and development, production, and administration.
Schaeffler is one of the world's largest suppliers of bearings and other components to the automotive and industrial sectors. The company has been hit hard by the global economic downturn, which has led to a decline in demand for its products.
The cuts will be made over the next two years.
Schaeffler said it will provide support to the affected employees, including severance pay and job placement assistance.
The company said it expects the cuts to save it €500 million ($550 million) per year.
The cuts are a sign of the challenges facing the German economy. The country's manufacturing sector has been hit hard by the global economic downturn and the rise of competition from China.
The cuts will also have a significant impact on the town of Herzogenaurach, where Schaeffler is headquartered. The company is one of the town's largest employers.
The mayor of Herzogenaurach, German Hacker, said the cuts are a "bitter blow" for the town.
He said the town will work with Schaeffler to help the affected employees find new jobs.