Schaeffler AG has recently announced its intention to reduce its workforce by approximately 4,700 employees across Europe. This decision comes in response to the significant decline in the automotive sector, particularly affecting German manufacturers like Volkswagen AG.

The company's restructuring plan involves eliminating around 2,800 positions at ten locations in Germany, with the aim of achieving annual savings of €290 million ($316 million) by the end of 2029. In addition to the job cuts, Schaeffler will also be closing two sites as it grapples with the challenges posed by the ongoing slump in car production.

This move by Schaeffler reflects the wider impact of declining demand within the automotive supply chain, highlighting the current struggles faced by the industry.